Meetings continue over nickel woes

Thursday, 8 February, 2024 - 14:23

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Premier Roger Cook has defended the state’s trade relationship with Indonesia, despite recent concerns over the nation’s impacts on local nickel markets.

The state’s nickel industry struggled through January, largely the result of a flood of Indonesian supply which has cut prices by almost half over a 12-month period.

Crisis meetings between state and federal government and key industry stakeholders are ongoing – with Mr Cook planning to meet federal resources minister Madeleine King again today.

Mr Cook this morning reiterated the importance of communication around the nickel issue but said his conversations over nickel had not yet extended across the border.

“It’s not just critical minerals that we share an important economic relationship with Indonesia on,” he said.

“It’s right across our whole range of traded goods.

“We need to continue to make sure we work with Indonesia around the impact of the high levels of nickel which are impacting the international market.”

The premier said his meeting with Ms King would guide an approach to any conversations that may be required.

Mr Cook revealed he had met with the Chamber of Minerals and Energy WA this morning, but stopped short of confirming royalty relief was on the way for nickel producers.

“We need to make sure that any assistance we provide is about supporting industry, rather than just the price cycle,” he said.

“But we understand that the industry is being disrupted by the significant increase in nickel supplies on the global market.

“If there’s market distortions which we need to respond to, we’ll obviously be at hand to see what we can do.”

The CME yesterday released a report it commissioned claiming around 10,000 and $1.8 billion worth of investment were at risk if the Australian nickel industry collapses.

The state experienced a spate of nickel and battery metal project closures and production curtailments last month.

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