Australia’s nickel mines in need of patriotic support

The managing director of Yilgarn, the Australian goldfield nickel miner, is calling for more appreciation from investors and the industry for modern Australian nickel miners.

Julian Hanna believes that “Australia is emerging as an increasingly larger supplier of concentrate internationally to meet world consumption of around 1.4 million tonnes per annum”.

Australian nickel mines produce between 8,000 and 15,000 tonnes of nickel concentrate per annum but according to Mr Hanna, “with ongoing new discoveries and global investment the nickel community has increasing reason to look at a slice of the Australian action”.

However, if this interest is taken up, it could create challenges for the Australian nickel sulphide industry in terms of retaining ownership and control of the country’s mines.

International consolidation trends are already likely to impact on ownership issues, as could the rising cost of mining and the availability of skilled labour and drill rigs.

World demand for nickel sulphides remains strong and a shortfall is forecast, leaving the sector to increasingly rely on proposed new nickel laterite mineralised projects.

Both the Chinese and other Asian economies are increasing their demand to meet stainless steel output and for products such as batteries and metal alloys.

On this basis Mr Hanna is warning that there is a strong possibility of Australia’s nickel producers becoming absorbed by foreign owners, as has been the case with most of the country’s gold producers.