20 July, 2025
uncertainty-looms-over-leinster-as-residents-hope-for-nickel-mine-revival

Chloe Craig dreams of providing her daughter, Haylee, with the same idyllic upbringing she enjoyed in the mining town of Leinster, an “oasis in the desert” nestled in the vast bushland of Western Australia. Established during the 1970s nickel boom, Leinster is located about 970 kilometers northeast of Perth. It was originally built for workers and their families, long before the fly-in, fly-out work rosters became the norm in the resources sector.

Despite its small and remote nature, Leinster is beloved by its residents for the unique lifestyle it offers. Chloe Craig, who moved to the northern Goldfields with her family in 1991, appreciates the freedom and community spirit that the town provides. “It’s a great lifestyle … I’ve grown up here, now she’s growing up here,” she said, referring to her daughter. “The freedom she gets out here is second to none and not a lot of kids get it these days.”

The Impact of BHP’s Decision

The tranquility of Leinster was shattered a year ago when BHP announced the suspension of its Nickel West operations, a decision that sent shockwaves through the community. The announcement, made on July 11, 2024, originated from BHP’s global headquarters in Melbourne and was a devastating blow to the town’s residents.

“Everyone’s heart sank, it was the unknown,” Chloe Craig recalled. “It was massive for the town. At the time it was horrible.” The town’s population plummeted from approximately 600 to 220 as workers either took redundancies or were redeployed within BHP.

BHP estimates the population at Leinster has fallen from about 600 people to 220.

Harry Reynolds, Chloe’s partner, described the scene as “removalist trucks everywhere and people leaving left, right and centre.” The sudden closure of the nickel operations left many in Leinster questioning their future.

Legal and Economic Context

Despite the closure, BHP cannot simply abandon Leinster due to the Nickel (Agnew) Agreement Act 1974. This legislation, approved during Sir Charles Court’s premiership, legally binds BHP to provide essential services like water, power, and housing for police, education, and medical staff in the town. Any change to this arrangement requires state parliament’s approval.

The modernisation of this agreement has given some residents hope. BHP’s investment in an Australian-first nickel sulphate plant at Nickel West’s Kwinana refinery is seen as a positive sign. This facility is expected to produce enough nickel sulphate crystals to power 700,000 electric vehicle batteries annually.

“When you see mining companies spending money, it gives you a sense of security,” said Peter Craig, the long-serving president of the Shire of Leonora.

However, the emergence of Indonesia as a low-cost nickel producer has disrupted the market, leading to the closure of at least 10 nickel mines across Western Australia last year.

Community Resilience and Future Prospects

Despite the challenges, the community remains resilient. BHP has committed to reviewing its Nickel West business, including the Leinster operations, in early 2027. Dan Heal, BHP’s vice-president of WA nickel, stated that about 350 workers have stayed on for care and maintenance at Nickel West, including around 150 in the northern Goldfields at Leinster and Mount Keith.

“It’s very early stages of our review and what comes next for nickel,” Mr. Heal said.

The business community in Leinster remains cautiously optimistic. Mathew Read, who manages a mechanical business, believes in the town’s potential despite the uncertainty. “It’s sad to see the town reduced to a small size,” he said. “We’ll remain here in Leinster, we’ve definitely got a few years left here.”

Tim Fletcher, an electrical contractor, shares this sentiment, expressing a positive outlook regarding Nickel West’s future. “We’re not running away — we’re set up, we’re established … they’re playing the long game,” he said.

The Human Element

For residents like Santina Morelli, who has lived in Leinster for eight years, the town’s lifestyle is irreplaceable despite its challenges. Her home decor business supplements her income, and she volunteers for St John Ambulance. “It’s a ghost town during the day … it’s very quiet,” she said, noting the decline in school enrollment from 120 to 60 children.

Chloe Craig and her partner Harry Reynolds have no plans to leave Leinster. “I’ve got no plans to leave … I want to be out here as long as possible,” Mr. Reynolds said. Chloe Craig remains hopeful about the future, especially for those with young children. “A lot of us who have stayed behind have young kids and we’re happy to stay if the mine reopens,” she said.

As the community awaits the 2027 review, the question of whether the nickel operations will restart remains unanswered. Until then, the residents of Leinster continue to hold onto hope, cherishing their unique lifestyle and the tight-knit community they have built.