The BGA Australia team, led by Managing Director Michael McNeill, wrote an update to clients on the Australian governments’ efforts to improve the nickel industry.

Context

  • In response to the global supply glut of nickel, Australia’s Albanese Labor government has placed nickel on the Critical Minerals List, meaning companies will be eligible for government financing.
  • The government is pushing international counterparts for a nickel pricing structure that reflects high ESG standards.  More broadly, the government is preparing to release its response to the U.S. Inflation Reduction Act in its quest to make Australia a “renewable energy superpower.”

Significance

  • Resources Minister Madeleine King wants Australian nickel producers to regain “their foothold into that international market against this extraordinary flooding of the international nickel market out of Indonesia, funded through China, of course.” Since December 2023, six nickel facilities have either announced reduction in operations or gone into care and maintenance.
  • The decision to place nickel on the Critical Minerals List means companies will have access to financing under the A$4 billion ($2.6 billion) Critical Minerals Facility and critical minerals–related grant programs such as the A$40 million ($26.2 million) International Partnerships Program.

Implications

  • The Western Australia State Labor government has announced a Nickel Financial Assistance Program that will provide a 50 percent royalty rebate for 18-months, when prices are below US$20,000 per ton, repayable over 24-months.
  • King has backed the case for a pricing structure that distinguishes between nickel produced to high ESG standards in Australia and so-called dirty nickel produced in Indonesia. She said she had been in discussions with counterparts in United States, Canada and European Union.

We will continue to keep you updated on developments in Australia as they occur. If you have any comments or questions, please contact BGA Australia Managing Director Michael McNeill at mmcneill@bowergroupasia.com.

Best regards,

BGA Australia Team

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Managing Director

Mick is a highly-experienced government relations expert and trusted advisor on consensus building, conflict resolution and legislative developments. He has played an integral role in helping parties achieve desired outcomes in areas of national security, health policy, foreign policy and reputational crisis management, as well as media relations, communications campaigns, immigration and human rights. Mick has two decades’ experience working with government as a media analyst, political adviser and NGO advocacy manager. After a stint serving as an adviser to an Australian senator, Mick took on the role of the locally engaged senior political specialist at the U.S. Embassy in ... Read More