Kambalda locals are disappointed at BHP’s decision to suspend its Nickel West arm for at least three years, a move one says will cause panic for the mining giant’s 3000 workers and their families.
BHP will begin suspending operations at the Kwinana nickel refinery, the Kalgoorlie smelter and its major mines at Mt Keith and Leinster from October, as well as the development of the West Musgrave project.
The small mining town of Kambalda is 60km south of Kalgoorlie, with its 1700-strong population sustained by the nickel and mining industry.
The town is in close proximity to the nickel mines and a concentrator plant.
David Rainsford, owner of antiques store Dave’s Old and New shop, has lived in Kambalda for 17 years and the decision would have a negative impact on the tight-knit community.
“I am (disappointed) because I have friends that work (at Nickel West) that have been there a long time,” he said.
“I feel for those people that have got young kids . . . if you’ve got a family and you’re based here in Kambalda, it makes it really difficult.”
He reiterated his previous comments to The West Australian that gold will become the lifeline of the town.
“If gold (prices) weren’t up as high as it was, the whole district would be in a lot of strife, people will be in big trouble,” he said.
Mr Rainsford said it did not make much of a difference whether the review was made in one or three years time because most people would consider leaving town immediately.
While long-time local and owner of the Two Shovels Gardening Service Ben Cloughessy said it would be “a bit of a panic for the first couple of months”, he was hopeful “someone else is going to snap up an opportunity on a smaller scale”.
“I truly believe there’s bigger plans in place, there’s a lot more than just BHP in the way of big companies and big names in mining,” he said.
“I don’t believe it would be the biggest worry in the world.”
BHP on Thursday also announced it would establish a $20 million community fund “to support local communities” while WA Nickel was temporarily suspended.
“It sounds like a pretty fantastic thing . . . it’s about time (BHP) give back to the little people,” Mr Cloughessy said.
It comes after the Andrew Forrest-owned Wyloo Metals placed its Kambalda nickel mines on care and maintenance at the end of May, with more than 250 jobs axed as a result.