Sleeping Giant or Dead?
Western Australia's once-booming nickel industry is facing its toughest period in history. Thousands of job losses this year mark a bleak reality for an industry that dates back to the 1960s.
The discovery of nickel put the Goldfields town of Kambalda on the map, leading to the development of the country's first nickel mine. However, cheaper nickel from Indonesia has flooded global markets, resulting in the closure of at least 10 mines across WA.
Despite the challenges, the WA nickel industry still has a pulse. Nickel's fastest-growing application is in lithium-ion batteries for electric vehicles, and global decarbonization efforts are expected to increase demand.
Several projects offer hope for the future. NiCo's proposed $2.9 billion Wingellina nickel-cobalt mine has been awarded major project status by the federal government, and the sealing of the Outback Way will make remote projects more viable.
However, the market needs to reset itself with higher prices to attract new investment. The green transition will continue, and nickel will find its place again, but it is a waiting game for miners.
Projects will see the light of day if they are economically viable and sound. The push towards green nickel is not changing the dial significantly, but Indonesia is working to improve its ESG credentials, which could further impact WA's nickel industry.