Hi Bayer There are a few reasons such as the copper content I...

Hi Bayer
There are a few reasons such as the copper content I mentioned, PAN require these credits, the Ni content of smelter feedstock is 12% Ni versus PAN current at around 7% (which would in their current OT partner specs)and transport costs. All NiWest concentrate goes to smelter in trains then after smelting the matte goes to Perth Refinery via train, PAN concentrate would have to be shipped to Perth (Ni import license required for Port handling) or even Esperance as this is already licensed to handle Ni concentrate then train to Kalgoorlie. Transport costs would be prohibitive. Also you will hear companies (junior explorers) claim they have "Kambalda Style" Ni sulphide desposits. The Kal Smelter is setup to process this type of ore. During the massive downturns in the middle 90's when Ni got down to $3000/T, WMC (owner of the NiWest division before BHP buyout), shutdown all of Kambalda mines except LanFranchi and campaign ran the Kambalda concentrator 4 days a month purely to blend with the Leinster and Mt Keith concentrates to keep the smelter feedstock at spec.
Another point is BHP NiWest will have more than sufficient feedstock from their own operations with their operations up to full mining rates, upgrades to concentrators and smelter and Kwinana Refinery also getting a well deserved birthday with money to carry out upgrades. BHP ran the NiWest division into the ground as they did not see it as one of their Pillars. Now it is back into the fold, due to green revolution, money is going back in to bring it back to former state.
And last but not least Trafigura have a 5yr exclusive OT deal with PAN.