Chinese Hand In Global Nickel Price Collapse
Date
2/19/2024 7:06:11 AM
(MENAFN- Asia Times) Australia's nickel industry has been granted access to billions of dollars in federal funding as well as relief from royalty payments after a collapse in the global price of nickel that threatens thousands of jobs.
On Thursday (February 15), BHP wrote down the value of its West Australian nickel division Nickel West to zero and said it was considering placing the entire division into a“period of care and maintenance.”
Nickel is a metal crucial for the production of stainless steel, alloys, electroplating and the batteries used in electric vehicles.
The global price has dived from a high of US$50,000 in 2022 to just $16,400 per tonne on Monday in response to a huge increase in supply from Indonesia, much of it from Chinese-owned and operated mines.
On Monday ahead of this week's Cabinet meeting in Perth, Prime Minister Anthony Albanese said Indonesia had increased its share of the global nickel market by more than ten times .
Last Friday, his government added nickel to the official Critical Minerals List, giving it access to grants under the A$4 billion (US$2.6 billion) Critical Minerals Facility .
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