Lunnon Metals Limited (ASX:LM8) has acknowledged a recent announcement by BHP Group Ltd regarding an agreement for Gold Fields Ltd to acquire the Kambalda Nickel Concentrator. Lunnon Metals is an explorer and developer focused on high-grade nickel sulphide assets in Western Australia, particularly in the Kambalda region. Gold Fields, through its wholly-owned subsidiary St Ives Gold Mining Co. Pty, holds a significant 29.61% voting power in Lunnon Metals, making it the company’s largest shareholder. Lunnon Metals views the proposed change of ownership of the concentrator with interest, anticipating potential opportunities.
The company’s portfolio includes the Foster-Baker project, which hosts a high-grade nickel Mineral Resource of over 3 million tonnes at 3.0% Ni, equating to more than 95,000 tonnes of nickel metal. Central to this is the Baker nickel sulphide deposit, which is the subject of an underground mine proposal with current regulatory approval. The Baker deposit is characterised by high nickel grades, along with promising copper and cobalt by-product credits, elevated palladium and platinum levels, and low deleterious elements, notably arsenic, according to extensive metallurgical test work.
Lunnon Metals noted that its Foster and Baker projects were previously the focus of a Scoping Study reported in July 2025. Following the proposed transaction and once the full details are understood, the company will evaluate whether updates to this Scoping Study are necessary to reflect any shifts in its underlying assumptions. The acquisition of the Kambalda Nickel Concentrator by Gold Fields is subject to various conditions, including regulatory approvals, with completion currently anticipated in calendar year 2027.
