BHP’s Western Australia Nickel employs about 2500 people,and any downsizing of its mining operations,smelter in Kalgoorlie and refinery in Kwinana will reverberate across the industry.
WA Premier Roger Cook said BHP’s move reflected a structural disruption to the nickel industry. Long considered the rising star of Australia’s battery-driven mining green energy boom – alongside lithium and rare earths – nickel has been swamped by a tsunami of supply from Indonesia last year,which slashed prices and shuttered Australia’s sector seemingly overnight.
“We should all be worried about the future for our nickel industry off the back of BHP’s announcements today,” Cook told reporters in Perth on Thursday,adding that all levels of government needed to do “heavy lifting” now to help the industry cope.
“I’ve been speaking with[Federal Resources] Minister Madeleine King almost daily over the past week and meeting with industry representatives as recently as last night to talk about what the state government can do to support our miners,” he said,flagging the possibility of royalty cuts and rebates.
‘We should all be worried about the future for our nickel industry off the back of BHP’s announcements today.’
WA Premier Roger Cook
BHP chief executive Mike Henry said the mining giant was reducing operating costs at its nickel division and reviewing its Nickel West and West Musgrave operations.
“This is an uncertain time for the Western Australia nickel industry,and we are taking action to address the current market conditions,” Henry said.