BHP Billiton Ltd. (BHP) is closing the first round of bidding for the idled Ravensthorpe nickel mine in Western Australia on Monday, a person familiar with the matter said.

BHP has been conducting a review since mid-year of the nickel laterite mine, which cost the company US$2.1 billion to build but closed down only a few months after commissioning.

Media reports named Australian nickel miner Minara Resources Ltd. (MRE.AU), which already operates a laterite mine in Australia, and China's largest nickel producer Jinchuan Group. Australian mining magnate Clive Palmer, who in July bought BHP's Yabulu nickel refinery, has also been named as a potential bidder.

"These companies would be the logical partners," the person said, adding that the number of potential bidders seemed "light on numbers."

"Minara is a good fit," said one industry spokesman, who declined to be named.

The Yabulu refinery in Queensland had been modified to take feed from Ravensthorpe, and the operation was set to produce 50,000 metric tons of nickel annually.

The sale process is likely to conclude by the end of the year, and so far has received plenty of "competitive tension," the source said.

BHP earlier Monday declined to comment on the reports of the bidding process, and repeated earlier statements that it's considering all options for Ravensthorpe, including divestment.

-By Elisabeth Behrmann, Dow Jones Newswires;

61-2-8272-4689 elisabeth.behrmann@dowjones.com