In efforts to tackle current challenges facing Australia’s lithium and nickel industries and inform potential government responses, government roundtables have been announced to enable state and federal ministers to meet key figures in the industries and industry representatives.
Federal Minister for Resources, Madeleine King, and Western Australian Minister for Mines, David Michael, will meet with nickel and lithium producers, heads of resources companies, as well as representatives of the Chamber of Minerals and Energy Western Australia, Association of Mining and Exploration Companies, Minerals Council of Australia and relevant unions in Perth on 25 January 2024.
Federal and state governments are committed to working with industry to understand how to seek out advantage in the market for local companies and how they can better compete with cheaper and lower grade product produced elsewhere.
Nickel is currently subject to an oversupply in the market which has resulted in lower prices. Lithium is subject to price volatility due in part to the concentration of supply chains.
The roundtables will discuss these issues as part of efforts to better understand challenges and to consider possible steps to help Australian companies better compete in the global market.
Ms King said that lithium and nickel are both crucial to the energy transition to decarbonise, with the mining of these resources supporting many local jobs.
“Commodities traditionally go through natural and cyclical boom and bust cycles, but the potential prolonged impact this could have on Australia’s energy transition, local workforce and development of Australia’s minerals sector is a matter of great concern.
“I will be working with industry and experts to develop an urgent plan to ensure we can turn the world leading reputation of our resources industry into an advantage in the international market for our local companies. I am determined to ensure Australian miners can continue to compete with cheaper and lower grade and high carbon intensity minerals produced elsewhere.”
Mr Michael said that this is a reminder that the mining industry is subject to cyclical commodity price fluctuations and other market forces beyond its control.
“I am confident that in the longer term, Western Australia’s world class nickel and lithium industries will survive and thrive as providers of responsibly and ethically sourced, high-quality product for the battery industry.”
Mr Michael said that while he is hopeful that many of the affected workers can be redeployed or find alternative employment in Western Australia’s resources sector, there are a range of measures in place to support workers into jobs, or to upskill and reskill so they can take advantage of other opportunities.
“We will continue to monitor the impacts of the nickel and lithium price slowdown and I look forward to discussing the issues involved with industry leaders.”
