The Nickel West unit operates the Mt Keith, Cliffs and Leinster mines and associated concentrators, the Kalgoorlie smelter, the Kambalda concentrator and the Kwinana refinery.
The latest move by BHP comes after a review of the operations.
BHP Billiton said in a statement: "This review is now complete and the preferred option, the sale of the business, has not been achieved on an acceptable basis.
"The company will only pursue options that maximize value for shareholders."
Nickel West asset president Paul Harvey said: "The focus of Nickel West will remain on delivering safe and efficient production whilst pursuing every opportunity to maximize productivity, to reduce operating costs and increase free cash flow."
Earlier this year, the company announced plans to spin off certain noncore assets into a separate company but it was continuing to search a potential buyer for nickel operations.
Glencore and China’s Jinchuan were the front line bidders for Nickel West.
For the year ending 30 June 2015, Nickel West is estimated to produce 95,000 tons of nickel, of which 55% will be from third-party ores, reported Reuters.
