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Government backs nickel and lithium industriesGovernment backs nickel and lithium industries22 January 2024Federal Minister for Resources Madeleine King and Western Australian Minister for Mines David Michael will meet with nickel and lithium producers to discuss challenges facing the industry and to inform possible responses from government. Minister King and Minister Michael will meet with heads of resources companies, as well as representatives of the Chamber of Minerals and Energy WA, Association of Mining and Exploration Companies, Minerals Council of Australia and relevant unions in Perth on Thursday. Australian minerals are produced to the highest environmental, social and governance standards, meaning we offer more sustainable and ethical critical minerals than many of our competitors.The Federal and State Government are committed to working with industry to understand how to seek out advantage in the market for our 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.Comments from Minister King:“The Albanese Government will always support Australia’s resources sector.“Fluctuations in the nickel and lithium markets are having an impact on our domestic minerals industry.“Lithium and nickel are both crucial to the energy transition as we decarbonise. The mining of these resources supports 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.”Comments from Minister Michael:“This is another 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, WA’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.“While I am hopeful that many of the affected workers can be redeployed or find alternative employment in WA’s resources sector, we have 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.”MinistersThe Hon Madeleine King MPThe Hon Ed Husic MPSenator the Hon Tim Ayres
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