WESTERN Australian Minister for Mines and Petroleum Norman Moore said the value of the states nickel production is forecast to grow in the coming year as the price rises and nickel activity ramps back up.
Western Australia Mines and Petroleum Minister Norman Moore
Delivering the opening address of the Australian Nickel Conference this morning, Moore said nickel miners in WA were among the hardest hit by the global financial crisis in late 2008.
Were now two years from the dark days of 2008, he said.
Casualties of the GFC included BHP Billitons Ravensthorpe and Rockys Rewards mines, Panoramic Resources and Thundelarra Explorations Copernicus mine, Norilsk Nickels five WA mines and Mincor Resources Miitel mine which has since reopened.
However, nickel production in WA for the 2010 financial year was worth $A4.1 billion, proving the sector is still a major part of the states mining industry.
Its probably too early to speak of a full recovery, Moore said.
He said production levels were still off their peaks but value was rising with the rising nickel price.
WA nickel miners produced 180,000 tonnes of nickel in the 2010 financial year and Moore expects that figure to rise.
Moore praised miners for pushing ahead with new mines and exploration.
Western Areas bravely commissioned Cosmic Boy at the depths of the global financial crisis, he said.
He said WA still has known contained nickel resources of 38 million tonnes, with 11Mt being sufides.
The realisation of the sectors full potential will require market sentiment to go our way, Moore said.
In the 2010 financial year, mining companies spent $195 million on exploration, which is still off its peak of $300 million in the 2008 financial year, just before prices crashed.
The nickel price was trading at $US29,365 per tonne in April 2008, but had slumped to just $9173/t by October 2009.
Overnight, nickel for three month delivery closed at $US24,050/t, down 1.1%.
Moore described the Rosie nickel discovery, a joint venture between South Boulder Mines and Independence Group, as one of the states most exciting new nickel mines.
Discovered last year, the partners have hit mineralisation grading up to 9% nickel.
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