Australia Minister Madeleine King and Western Australian Minister for Mines David Michael met with nickel and lithium producers to discuss industry challenges and inform government responses.
Minister King and Minister Michael met with heads of resources companies, representatives from the Chamber of Minerals and Energy WA, Association of Mining and Exploration Companies, Minerals Council of Australia, and relevant unions in Perth.
Australian minerals are produced to the highest environmental, social, and governance standards, ensuring they offer more sustainable and ethical critical minerals than many competitors.
The Australian and WA governments are committed to collaborating with industry to understand how local companies can gain market advantage and compete effectively with cheaper, lower-grade products produced elsewhere.
Nickel is currently experiencing an oversupply in the market, leading to lower prices.
Meanwhile, lithium prices are influenced by the concentration of supply chains.
“Fluctuations in the nickel and lithium markets are having an impact on our domestic minerals industry,” Minister King said.
According to Minister King, lithium and nickel are vital for the energy transition and decarbonisation.
“Commodities traditionally go through natural cynical 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,” the Minister stated.
“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,” Minister King added.
The roundtables aim to comprehend challenges and devise strategies to enhance Australian companies’ global market competitiveness.
Minister Michael said this is yet another reminder that the mining industry is susceptible to cyclical commodity price swings and other market variables 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,” he stated.
“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.”
