BHP reviews Australian nickel

BHP has completed a full year assessment of its Australian nickel assets.

According to the company, after a review of its nickel assets in Australia and the US it has "recognised a US$450 million (before tax) charge against the carrying value of its Nickel West assets as a result of margin deterioration".

It comes as the miner also carries out a complete review of its controversial US shale gas assets.

The company saw an impairment of US$2.84 billion before tax over its Fayetteville shale gas assets.

BHP CEO Marius Kloppers said the company's "decision to enter the North American shale hydrocarbon business about 18 months ago was taken after extensive deliberation and due diligence. Our work convinced us that this significant, low-carbon fuel source would play a meaningful role as the world makes its future energy choices. We are still of this view, particularly given the ongoing positive technological advancements in the shale industry".

However, in the mean time it will move drilling from the dry gas field its Fayetteville to the more liquid rich gas fields in the Permian and Eagle Ford.

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