Australia’s nickel sector gets funding lifeline amid stiff Indonesian competition, global price plunge

Nickel, while also key to EV batteries, was not on the list previously but was placed on a “strategic materials list” as a more established industry.

Sharp declines in global prices of the metal have led to mine closures in Australia in recent months, threatening mining jobs. Its price has fallen almost 40 per cent in the past year amid an oversupply, particularly from low-cost producers like Indonesia.

Australian Resources Minister Madeleine King on Friday said in a statement she had exercised her discretion to include nickel in the critical minerals list so producers can access funding from the A$4 billion (US$2.6 billion) Critical Minerals Facility and other grants.

The critical minerals list, usually reviewed at least once every three years, was last updated in December.

Australia’s nickel industry faced “substantial structural challenges that cannot be addressed overnight”, King said.

“The international nickel price is forecast to stay relatively low through 2024, and likely for several years to come until the surplus of nickel in the market is corrected,” King added. “In the meantime, this puts further Australian nickel operations at risk.”

King said since the list was updated last year, six operating nickel facilities had either announced a reduction in operations or gone into care and maintenance.

Last week, major miner BHP said it was considering closing its nickel operations in Western Australia, putting 3,000 jobs at stake.

The mining sector is Australia’s biggest earner and with jobs on the line, Australian Prime Minister Anthony Albanese said his government would continue to support the industry with “smart, targeted and time-limited” policies.

“Nickel is a critical industry for the West but for our national interest