# Australia Bolsters Nickel Industry Amid Global Price Tumble
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Published: 2024-02-20T00:00:00.000Z
Category: Mining

By adding nickel to the critical mineral list, nickel has access to a multi-billion dollar stimulus fund to support Australia's domestic production.

#### Big Idea:

The inclusion of nickel in Australia's list of critical minerals opens a new chapter of governmental support for the industry, aiming to revitalize an essential link in the global green technology supply chain.

#### Why It Matters:

To protect its nickel sector from the protracted downturn in global prices, the Australian Federal Government has earmarked nickel as a critical mineral, thereby qualifying it for a significant A$6 billion stimulus package. This decision underscores a commitment to sustaining the country's nickel production.

#### State of Play:

The nickel industry is facing oversupply, primarily driven by increased production of lower-grade ore in Indonesia, which has led to a significant price slump. This has challenged the viability of Australian operations but also has broader implications for the global supply chain.

#### Key Details:

- The international nickel price is anticipated to remain subdued through 2024, influenced by market oversupply.
- Nickel's critical status for green technologies places it at the heart of the energy transition.
- The stimulus aims to stabilize the Australian nickel industry, ensuring its contribution to global energy transition efforts.
- Key players like BHP and Glencore have faced profitability challenges, prompting reevaluations of their nickel ventures in Australia.

#### Details:

Australian mining company BHP Group experienced an 86% decline in net income for the first half of the year , leading to a $2.5 billion impairment on its Australian nickel assets. Their CEO Mike Henry highlighted a potential multi-year period of nickel oversupply lasting until the end of this decade, emphasizing the current unprofitability of their nickel business amidst this prolonged market condition.

> "The support for nickel producers is vital for our national interest as well as the global push towards a more sustainable future," stated Madeleine King, Australia’s Minister for Resources.

#### Dive Deeper:

The decision to support the nickel industry reflects a broader strategic imperative to secure Australia's place in the supply chains for technologies essential to the energy transition. By fostering a more resilient and sustainable nickel sector, Australia not only safeguards its economic interests but also contributes to the global effort to combat climate change.

#### Yes, but:

The global nickel market remains volatile, with price recoveries contingent on broader industry adjustments and demand for high-grade nickel.

Source: The Money Game (https://themoneygame.zeabur.app/stories/australia-bolsters-nickel-industry-amid-global-price-tumble)