The commodity is meant to be the answer to the green revolution but it’s on the brink of collapse and Australia is in the firing line. Analysts believe up to half of the world’s nickel mines are unprofitable at current prices. And those prices are unlikely to change anytime soon. That has profound implications for Australia’s multinational miner, BHP.
While nickel is only a minor component of its overall portfolio, the “Big Australian” had high hopes for the critical mineral’s future. It’s a key ingredient in advanced batteries and high-efficiency electric motors. And both are crucial in the race to limit the impact of CO2-induced climate change.
Successive Australian Federal Governments have also been touting the ambition to become a global green-battery supplier. After all, every rare – and critical – component can be mined Down Under. So why not smelt it? And build the end products ourselves? Indonesia has the same ambition.
But it’s bolted from the starting blocks, leaving Australia in its coal-fuelled smoke. Indonesia’s new China-built and operated nickel processing industry is pricing out all competition. It was $43,000 a tonne a year ago. Now it’s $25,000 a tonne.
For the rest of this article: https://www.news.com.au/finance/business/mining/entire-aussie-industry-on-the-brink-amid-china-move/news-story/514751205622a9756215a4d05aa21241