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Australia wants to build a battery chemicals industry to reap
more value from mineral wealth, but its nickel sector faces
heavy job cuts after a jump in Indonesian supply saw prices drop
40% in a year.
In a statement on Saturday, Western Australia Premier Roger Cook
announced a nickel financial assistance program, which he said
would give a 50 percent royalty rebate for 18 months, when
prices were below $20,000 per ton, repayable over 24 months.
"The Cook government will offer royalty relief to Western
Australia’s crucial nickel industry, supporting thousands of
local jobs as well as the state’s vision of becoming a global
battery minerals processing hub," the premier's statement said.
Federal Resources Minister Madeleine King on Friday placed
nickel on the critical minerals list, meaning nickel companies
will have access to financing under Australia's $2.6 billion
Critical Minerals Facility which offers low interest loans, and
related grant programs.
Weak nickel prices have forced Australia's high cost producers
to announce several writedowns and restructures, and analysts
said last month it will force a rethink by top global miner BHP
Group on its nickel strategy this year.
(Reporting by Sam McKeith in Sydney, Editing by Raju
Gopalakrishnan)
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