An influx of cheap nickel supply from Indonesia has all but killed off Western Australia’s long-running nickel sector. Nickel prices halved in 2023, dipping below $16,000 per tonne in December as surpluses widened. According to Benchmark Mineral Intelligence, Indonesia accounted for 49% of nickel production in 2023, up from less than 5% just eight years ago.
Nickel sector decimated
The impact on Australia’s nickel industry has been dramatic. ASX 200 producer IGO paid A$1.1 billion ($744 million) for nickel miner Western Areas in mid-2022. Just 18 months later, the entire value of the acquisition had been written off and the Cosmos development project was suspended, resulting in the loss of 400 jobs.
Wyloo Resources, owned by Fortescue founder Andrew Forrest, paid A$760 million for Kambalda nickel producer Mincor Resources, and just seven months later, announced the suspension of operations.
A spokeswoman for Wyloo confirmed to MINING.COM that a joint feasibility study with IGO into a nickel sulphate plant had been paused.
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