BHP Group has temporarily suspended its Western Australian nickel operations, citing a global oversupply of nickel.

The move, which will begin in October and last until at least February 2027, is expected to impact thousands of workers across the state.

BHP's Nickel West business, encompassing mines at Mt Keith and Leinster, the Kwinana nickel refinery in Perth, and the Kalgoorlie smelter, will all be placed on care and maintenance.

The company, however, has pledged continued investment of roughly $450 million annually to ensure a smooth restart when market conditions improve.

The decision comes amidst concerns regarding a surplus in the global nickel market. BHP asserts that the oversupply has necessitated the temporary shutdown.

Western Australia's Premier, Roger Cook, expressed his government's commitment to supporting affected workers and regional communities during this challenging period.

Mines and Petroleum Minister David Michael acknowledged the cyclical nature of the mining industry and its vulnerability to market fluctuations.