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🇦🇺 Australia /Economy & Trade

Call to Bail Out Australia's Last Remaining Nickel Smelter

From ABC Australia · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

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  • A Western Australian Liberal MP is calling for a government bailout for Australia's sole nickel smelter.
  • The Kalgoorlie Nickel Smelter, which operated for 51 years, was mothballed in 2024.
  • The MP argues that nickel jobs in Western Australia should be valued equally to those supported by recent government aid for eastern states smelters.

Australia's only nickel smelter, located in Kalgoorlie, Western Australia, is seeking a government bailout, according to a local Liberal MP. Rick Wilson, whose federal electorate includes the smelter, is urging the Commonwealth to provide similar support to the facility as has been given to other metal smelters on the east coast. The Kalgoorlie Nickel Smelter, which operated for 51 years before being mothballed in 2024, has not yet received any government assistance.

Are jobs in the Hunter Valley worth more than in the Goldfields?

— Rick WilsonThe WA Liberal MP questioned the federal government's allocation of support for smelters.

In the past year, the federal government has committed substantial funds to keep four eastern states' smelters operational, including a $2.5 billion deal for Tomago Aluminium. Wilson highlighted that nickel was added to the government's Critical Minerals List in February 2024, emphasizing its strategic importance. He questioned the disparity in support, asking, "Are jobs in the Hunter Valley worth more than in the Goldfields?"

The bigger picture is that the safeguard mechanism is destroying the viability of our heavy industries and forcing the taxpayer to subsidise industries which the government's policy have made unviable.

— Rick WilsonThe MP criticized government climate policies for impacting heavy industry.

The broader context involves concerns about the safeguard mechanism, which critics argue is undermining the viability of heavy industries and necessitating taxpayer subsidies. Last year, the federal opposition unsuccessfully pushed for a Senate inquiry into the metals manufacturing industry, citing the risk of closure for 10 smelters and refineries due to high energy prices.

The Commonwealth continues to work productively and collaboratively with state governments and facility owners.

— Office of Industry Minister Tim AyresA statement from the Industry Minister's office addressed the importance of nickel and government collaboration.

While the federal government acknowledged nickel's importance as a critical mineral for Australia's industrial future, stating it works collaboratively with state governments and facility owners, the City of Kalgoorlie-Boulder mayor expressed skepticism about the effectiveness of bailouts. Glenn Wilson described such measures as "sugar hits" lacking long-term community support strategies.

The alliance understands obviously it's important to have these facilities up and available for our communities.

— Glenn WilsonThe City of Kalgoorlie-Boulder mayor commented on the importance of industrial facilities for communities.
DistantNews Editorial

Originally published by ABC Australia in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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