Live news: BHP flags cuts and potential write-down as price of nickel drops 45%

BHP has warned of cost cuts and a potential write down in the value of its nickel unit to reflect the slump in the price of the metal, which is used for electric vehicles.

The price of nickel slumped 45 per cent last year as supply from Indonesia surged. That had a knock-on effect for BHP’s operations in Western Australia. The company said it was assessing the book value of its nickel operations as a result.

Australia’s largest company also cut production guidance for its Queensland coal operations, which it owns with Mitsubishi, but production of copper and iron ore, important commodities for the company, improved in the fourth quarter.