Australian resources giant BHP has reaffirmed its commitment to providing sulphuric acid to Lynas Rare Earths, an Australian-listed mining company. This announcement follows BHP's decision to temporarily suspend its Western Australia nickel operations, citing lower-than-expected nickel prices.
Strategic Supply Agreement
Lynas has a supply agreement with BHP's Nickel West to receive sulphuric acid from the Kalgoorlie nickel smelter or other imported sources. This contract, which began today, is set to run until June 30, 2027. The supply of sulphuric acid is crucial for Lynas' rare earths processing facility in Kalgoorlie.
Economic Implications
BHP's commitment ensures a steady supply of a critical input for Lynas, despite the nickel business suspension. This move highlights the interconnected nature of mining operations and the importance of maintaining supply chains amid market fluctuations.
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