In Australia, there have been calls to support BHP's mothballed nickel smelter in Kalgoorlie
Rick Wilson, a member of the Australian Federal Parliament from the Liberal Party, has called on the government to provide financial support to BHP’s nickel smelter in Kalgoorlie, Western Australia. The facility is the country’s only nickel smelter; in 2024, after 51 years of operation, it was placed on standby.
Wilson, whose O’Connor constituency includes Kalgoorlie-Boulder, stated that the plant should receive assistance similar to the support the federal government has provided to other metallurgical enterprises. Last week, the government announced a 2.5 billion Australian dollar deal to secure the future of Tomago Aluminium.
Nickel was added to Australia’s list of critical minerals in February 2024. Wilson argues that the Safeguard Mechanism undermines the viability of heavy industry and forces taxpayers to subsidize enterprises that, in his view, government policy has rendered unprofitable.
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The office of Industry Minister Tim Ayres stated that nickel is a critical mineral for Australia and plays a key role in the country’s industrial future. They added that the federal government continues to work with state governments and mine owners.
Calgoolie-Boulder Mayor Glenn Wilson, who also heads the Australian Mining Cities Alliance, cautioned that government aid without long-term planning may only be a temporary solution for businesses and communities. IGO’s Nova mine is set to cease operations by the end of the year and be converted into a lithium processing facility. On August 5, Glencore announced that it had written down the value of the Murrin Murrin mine to zero—a loss of $457 million—due to current market conditions.
BHP plans to review the future of its Nickel West division by February 2027. In its annual report, the company stated that it is evaluating a potential sale of its nickel assets in Western Australia, as well as options to extend the temporary shutdown, resume operations, or close the facility. Following the plant’s mothballing, only a small number of Nickel West’s approximately 3,500 employees remained on the payroll.
