BHP Profit Falls By 86% As The Nickel Crash Bites

A collapse in the price of nickel, used in the batteries of electric vehicles (EVs) and stainless steel, all but wiped out the half-year profit of BHP, the world’s biggest mining company.

After-tax profit of Australia-based BHP plunged by 86% from $6.5 billion to $927 million in the six months to December 31 with the bulk of the fall blamed on a $5.6 billion write-down of the value of the company’s nickel business.

Because the write-down is a non-cash item BHP shareholders will still get a half-year dividend, though that has been trimmed from 90 cents to 72c.
BHP managing director, Mike Henry, said global commodity prices in the December half had been softer than expected, though demand in China was healthy despite weakness in housing while India remained a bright spot.