In a brief statement, the company said it was reviewing all options, including the potential sale of all or parts of the business.

It comes after operations in the sub-level cave at the Perseverance underground mine were suspended in December due to safety concerns.

“Nickel West is one of the world’s leading nickel producers,” Nickel West asset president Paul Harvey said.

“Our reputation is proudly built on the commitment and calibre of our people and the support of our communities and stakeholders.

“Our focus on working safely and continuing to find and deliver ways to improve the competitiveness of our business is unchanged.”

The company said the review of the Nickel West business was consistent with its long-held practice of continually reviewing its portfolio.

It comes after BHP CEO Andrew Mackenzie told a Miami conference overnight that the simplification of the company’s portfolio was compelling and a priority.

The Nickel West business comprises the Mt Keith, Cliffs and Leinster mines and associated concentrators, the Kalgoorlie smelter, Kambalda concentrator and the Kwinana refinery.

BHP previously confirmed there had been no major investment in capital in nickel and the business was largely running for cash so it wouldn’t be a “distraction to management”

However, today is the first time it publicly acknowledged a potential sale of the assets, which fall outside of its four pillars of copper, coal, iron ore and petroleum.

In its 2013 financial year results, BHP recorded a $US1.2 billion ($A1.3 billion) impairment on the Nickel West assets.

The business recorded revenue of $761 million but underlying earnings before interest and tax of negative $151 million.

The Nickel West division employs up to 3000 people and produced 78,200 tonnes of nickel in the December 2013 half.

Today’s announcement follows a Bloomberg interview with Glencore Xstrata CEO Ivan Glasenberg in March in which he said Nickel West was for sale and Glencore was interested.

“It’s on the market, it’s clear it’s on the market,” he said at the time.

“We will kick the tyres. It’s something that would make sense but it is an asset that’s had its problems.”

Glencore already owns the Murrin Murrin nickel operation in Western Australia through its takeover of Minara Resources in 2011.

“It’s something that would make sense with Minara being close by,” Glasenberg said.

“We do buy certain products from them.”

According to the same March report, Perth-based Western Areas had also looked at the Nickel West assets, as had former Xstrata boss Mick Davis’ new vehicle, X2 Resources, which contemplated a bid of less than $1 billion.

Shares in BHP closed 0.9% higher at $A38.30.