Nickel added to Critical Minerals list, giving miners access to $4b fund
Make us a preferred source
Make us a preferred source on Google
The news: Nickel has been placed on the Critical Minerals list by Federal Resources Minister Madeleine King, opening the door for companies to access financing as nickel prices continue to slide.
The numbers: Since December 2023, six operating nickel facilities have either announced a reduction in operations or gone into care and maintenance.
Companies will now have access to financing under the $4 billion Critical Minerals Facility and critical minerals-related grant programs such as the International Partnerships Program ($40 million).
The context: Australian nickel prices have plummeted in recent months. Australian miners are higher cost nickel producers and there is significant supply from Indonesia, the Philippines and China.
The winner of Indonesia’s presidential election Prabowo Subianto has signalled a desire to maintain his predecessor Joko Widodo's nickel export ban. And on Thursday BHP wrote down the value of its forthcoming $5 billion West Musgrave nickel mine to zero due to plunging prices.
King noted Australia offered more sustainable and ethical critical minerals, which are used renewable energy technology, compared to many of its competitors.
She said she been in discussions with counterparts in the US, Canada and EU to ensure the high standards applied in Australian mining and production of nickel and other critical minerals are reflected in future pricing on international markets.
What they said: 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”.
“In the meantime, this puts further Australian nickel operations at risk,” she said.
“Given impacts to our domestic capacity and noting the broader market developments presently unfolding in the nickel sector, I am fully convinced that we must be proactive in addressing the recent developments, including by adding nickel to the Critical Minerals List.”
The source: Department of Industry, Science and Resources
