Monday, December 20, 2010

BHP (NYSE:BHP) Nickel Production Interrupted at Kwinana

BHP Billiton (NYSE:BHP) announced Friday a shortage of nitrogen gas has resulted in an interruption at their Kwinana nickel refinery in Western Australia.

The plant accounts for five percent of global production, and last year produced a little above 66,000 tons of nickel.

This isn't the first time this year production was interfered with, as in March there was a stoppage for 11 days; that time because of a shortage of hydrogen gas, suggesting problems at the site, as both nitrogen and hydrogen are major elements used to refine nickel, and it is difficult to understand how it wouldn't be available at any time for the process.

1 comment:

Anonymous said...

Hydrogen is the gas that is causing the BHP kwinana nickel refinery to cease production. Normally it is produced on site but due to the WA DMP condemning the vetrocoke absorber vessel, due to lack of integrity, th ecurrnet plant was forced to shutdown.The hydrogen plant was due to be replaced in 2009. Say a lot about maintenance practices on site. They are dependant on BP and Westfarmers for hydrogen supplies.