MELBOURNE (Reuters) – Australian miner BHP Group (NYSE:) will temporarily suspend operations at its Nickel West and West Musgrave projects from October, the miner said on Thursday, as it grapples with falling metals prices and global oversupply.

The world’s largest listed mining company is set to review its decision to temporarily suspend nickel mining in Western Australia until February 2027.

“We have failed to overcome the significant economic challenges caused by the global nickel oversupply,” said Geraldine Slattery, CEO of BHP Australia.

BHP intends to invest approximately $300 million per year following the transition period to support the eventual restart of its nickel business.

Nickel prices have rebounded from year-end lows of less than $16,000, but are still more than a quarter lower than a year ago.

Global nickel producers have been hit by pressure from Indonesia, which has emerged as a supply powerhouse, and a shift away from nickel employ in batteries, which has contributed to a 40 percent drop in nickel prices over the past year to about $16,800 a metric ton.

Australia is seeking to develop a processing industry to add value to mineral resources such as nickel and infrequent earths that are key to the transition away from fossil fuels, including into the production of battery chemicals.

However, manufacturers face structural problems such as low prices and high construction and labor costs.

Australian battery metals producer IGO said on Thursday it has halted research into developing a facility to produce precursor materials for battery chemicals due to low nickel prices.

BHP will publish its quarterly production report next Wednesday.