The BHP board has given approval to advance its Pilbara iron ore mine in Western Australia's North West that is expected to deliver tens of millions of dollars to Indigenous contractors.

The resources giant will push ahead with its Western Ridge Crusher iron ore project, 21km southwest of Newman on Nyiyaparli Country, a sustaining tonnes proposal for BHP's Newman iron ore operations to replenish its depleting supplies of the steelmaking input, as it confirmed any government assistance to rescue WA's struggling nickel sector could be too late as Indonesia floods the market, dropping prices.

The WA-based miner expects to outlay $US943m to bring the Western Ridge project to life, which it expected would deliver 25 million tonnes a year from 2028-2029.

The scope of the project entails new ore processing and transport infrastructure - including construction of a 30 Mtpa primary crusher and 12-kilometre overland conveyor to transport ore to its Newman West hub.

BHP WA Iron Ore (WAIO) asset president Tim Day said he expected US$45 million in contracts would flow to Indigenous and local businesses, "both via BHP direct and indirect engagements".

"This will achieve significant social value for the communities in which we operate," he said last Tuesday.

The Western Ridge Crusher Project would support the creation of sustainable employment in the Pilbara through training and employment opportunities, and enhance regional development by supporting Indigenous suppliers, with first production tipped for the first quarter of 2026-27.

The project is expected to deliver an average of 25 million tonnes per annum for approximately 12 years of WAIO products, with the project intended to replace production from depleting orebodies around the Newman operations.

Board approval for the WRC project followed BHP releasing its 2023–24 financial year half yearly report, with a 27 per cent increase in iron ore underlying its cash profit earnings, with the company saying it had maintained its position as the world's lowest cost major iron ore producer.

The HH1FY24 report followed BHP announcing last week it could close its Nickel West operations, writing off the entire value of its WA nickel portfolio - about $5.4m - and was considering switching off its mines, putting more than 3000 jobs at risk.

The announcement came before the Federal Government added nickel to its critical minerals list, opening the sector to potentially billions of dollars in relief.

In 2022, BHP announced it would more than double the value of contracts to Indigenous vendors by the end of the 2023-24 financial year.

Mr Day's predecessor Brandon Craig - who was promoted in December to manage BHP's operations in Chile, Peru, the US, Brazil and Canada - said its WAIO would more than double the value of Indigenous contracts to more than $300m by the end of June 2024.

Mr Craig's announcement coincided with a $9.2m contract for Karlka FenceWright – a wholly owned subsidiary of the Karlka Nyiyaparli Aboriginal Corporation, the representative body of the Nyiyaparli people, the Traditional Owners of approximately 36,684 square kilometres of land and waters in WA's east Pilbara region.

Karlka FenceWright was one of 70 Indigenous vendors registered with BHP at the time, with other significant contracts recently awarded worth more than $150 million.

Areas of particular cultural and environmental significance to the Nyiyaparli people include the Fortescue Marsh, Weeli Wolli Creek, Coondiner Creek, Caramulla Creek and Savoury Creek.

Parts of the Hamersley, Chichester and Opthalmia Ranges and the Fortescue and Oakover Rivers are also major features of the area.