Lunnon Metals’ Top Shareholder Gold Fields to Buy Nearby Kambalda Nickel Plant
Key Takeaways
- BHP has agreed to sell the Kambalda Nickel Concentrator to Gold Fields, which holds 29.61% of Lunnon Metals through subsidiary SIGM.
- Completion is expected in calendar 2027 and depends on regulatory approvals, with that timing coming from BHP rather than Lunnon.
- Nothing has been agreed between Lunnon and Gold Fields, and the announcement discloses no price, terms or processing arrangement.
- Baker and Foster hold over 3 million tonnes at 3.0% Ni for more than 95,000 tonnes of nickel, and Baker already has an approved underground mining proposal.
- Lunnon may update its 21 July 2025 Scoping Study once the transaction details are understood, a possible catalyst for Baker's economics.
Kambalda Nickel Concentrator Heads to Lunnon Metals’ Largest Shareholder
Lunnon Metals (ASX:LM8) has noted a BHP Group Ltd (BHP) news release dated 7 October 2026, stating that BHP has entered into an agreement to sell the Kambalda Nickel Concentrator to Gold Fields Ltd (Gold Fields). The concentrator sits in the same district as Lunnon’s Baker nickel deposit.
Gold Fields, via its wholly owned subsidiary St Ives Gold Mining Co. Pty (SIGM), is Lunnon Metals’ largest shareholder, with 29.61% voting power. That gives the buyer a direct stake in the company next door.
The proposed transaction is subject to satisfaction of certain conditions, including regulatory approvals, with completion expected in calendar 2027. That timing comes from BHP’s media announcement, not from Lunnon.
So what does it mean for you? A processing plant moving into the hands of a major shareholder could open up options for Lunnon, but nothing has been agreed. The company says only that it looks forward to investigating potential opportunities arising from the proposed change in ownership.
Lunnon Metals’ stance
With the Concentrator to be in the hands of Lunnon Metals’ largest shareholder, the Company “looks forward to investigating potential opportunities arising from this proposed change in ownership.”
The announcement does not disclose the transaction price, its terms, or any commercial arrangement between Lunnon and Gold Fields.
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Baker and Foster: High-Grade Nickel Next Door
Resource snapshot
Between Baker and the historical Foster nickel mine, Lunnon reports a Mineral Resource estimate under the JORC Code (2012) of over 3 million tonnes at 3.0% Ni for more than 95,000 tonnes of nickel metal. JORC is the Australasian code that sets reporting standards for mineral resources.
Baker is Lunnon’s first discovery and the subject of an underground mining proposal with current regulatory approval. The announcement cites a short estimated lead time, high nickel grades, copper and cobalt by-product credits and low deleterious elements (unwanted impurities in the ore).
Table 1 shows the Baker Mineral Resource above a 1.0% Ni cut-off.
| Category | Tonnes | Ni % | Ni metal (t) | Cu % |
|---|---|---|---|---|
| Measured | **110,000** | **3.4** | **3,700** | **0.28** |
| Indicated | **622,000** | **3.7** | **22,900** | **0.31** |
| Meas+Ind | **732,000** | **3.6** | **26,600** | **0.31** |
| Inferred | **298,000** | **2.4** | **7,100** | **0.15** |
| TOTAL (Meas+Ind+Inf) | **1,030,000** | **3.3** | **33,700** | **0.26** |
The higher-confidence Measured and Indicated categories hold most of the nickel metal, which tells you the bulk of Baker’s resource is better defined than the Inferred portion.
Other attributes in the total Baker resource include:
- Cobalt at 0.06%
- Palladium at 0.60 g/t and platinum at 0.25 g/t
- Arsenic at 53 ppm
The announcement describes palladium and platinum levels as elevated and deleterious elements, particularly arsenic, as low.
What a Concentrator Does and Why It Matters
A nickel concentrator processes mined sulphide ore into a nickel concentrate, a more compact product that can be sold or refined further. Mines without their own processing plant generally depend on third-party facilities.
For Baker, which has an approved mining proposal, access to nearby processing capacity could be an important part of project economics. Lunnon has not said it will use the Concentrator, and the announcement does not indicate any processing arrangement.
The district context is notable. Kambalda has produced in excess of 1.6 million tonnes of nickel metal since its discovery in 1966. Gold Fields owns and operates the nearby Lefroy gold plant, and Lunnon’s tenements are broadly surrounded by tenements held by SIGM.
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Next Steps for Lunnon Metals
Baker and Foster were the subject of a Scoping Study reported on 21 July 2025. Given the potential impact, once the details of the proposed transaction are understood, Lunnon will consider whether updates to the Scoping Study are needed to reflect any change in its underlying assumptions.
Here is what to watch:
- Further details of the BHP and Gold Fields transaction
- Regulatory approvals
- Expected completion in calendar 2027
- Any update to the Scoping Study
The investment case rests on an approved, high-grade nickel project, a major shareholder set to own a nearby concentrator, and a potential, but unconfirmed, path to processing. Until more detail emerges, that remains a prospect to monitor rather than a commitment.
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