BHP Group Ltd (LSE:BHP, ASX:BHP) has reduced the number of contractors at its Kalgoorlie nickel smelter, with CEO Mike Henry committing to resolving the future of the loss-making division "as soon as practicably possible". The decision to halt work on the smelter's new precipitation system resulted in the immediate stand-down of involved contractors. This action is part of BHP's broader consideration to potentially mothball its nickel operations in Western Australia, amid plans that had initially involved nearly $1 billion in refurbishment for the 51-year-old smelter. Despite these developments, the Kalgoorlie smelter remains operational. However, the cessation of work on the new precipitation unit does not directly indicate a closure is imminent. This move aligns with BHP's strategy to rapidly reduce expenses, following significant workforce reductions at its West Musgrave nickel and copper project in WA.