The future of BHP Billiton's involvement in nickel mining is unclear after it said it was in talks to sell the business.
Only hours after chief executive Andrew Mackenzie told a US mining conference that the case for more "portfolio simplification" - such as selling assets - was compelling, BHP flagged the nickel sale to the market.
It said it was reviewing its Western Australian Nickel West business, which comprises three mines, concentrators and a smelter and refinery.
Nickel has been slated for a possible demerger along with other unloved assets aluminium and manganese as part of a spun-off $20 billion listed company.
However the company statement on Wednesday only mentioned a review of the long-term future of Nickel West, including the sale of all or parts of the business.
Since becoming CEO last year, Mr Mackenzie has argued for running a simpler business focussed on the currently more profitable iron ore, petroleum, copper and coal assets.
However, mining is cyclical and nickel prices are up nearly 40 per cent this year while number one earner iron ore prices have been steadily falling.
BHP recently sold its West Musgrave nickel project in Western Australia to Cassini Resources.
Mr Mackenzie said at the Miami conference that recent share price weakness reflected investors' views that cash which should have been returned to them was over invested in the business.
The company's shares are down three per cent since late February, but closed 34 cents up at $38.30 on Wednesday.
The company retained its full year guidance for iron ore of 217 million tonnes and metallurgical coal production of 43.5 million tonnes.
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