Call to bail out Australia’s last remaining nickel smelter
- WA Liberal MP Rick Wilson is calling for a federal government bailout for BHP’s Kalgoorlie Nickel Smelter, which was mothballed in 2024 after five decades of operation.
- Wilson argues that the facility deserves the same financial support recently granted to east coast metal smelters, especially since nickel is officially classified as a critical mineral.
- The MP criticized current federal policies, such as the safeguard mechanism, claiming they undermine the viability of heavy industries and necessitate taxpayer-funded subsidies to keep them afloat.
A Western Australian MP is calling for the federal government to step in and save Australia’s only nickel smelter, arguing that the facility deserves the same level of financial support recently granted to major industrial sites on the east coast. The push comes after mining giant BHP mothballed its Kalgoorlie Nickel Smelter in 2024, ending 51 years of continuous operations and leaving the future of the region’s industry in doubt.
Rick Wilson, the Federal Member for O’Connor, is spearheading the demand for Commonwealth intervention. He pointed to a recent string of government bailouts, including a massive $2.5 billion deal to secure the future of the Tomago Aluminium smelter in New South Wales. Over the past year, the federal government has committed a total of $1.67 billion to keep four east coast smelters operational, a level of support Mr. Wilson claims has been conspicuously absent for the West.
The debate over funding intensified after nickel was officially added to the government’s Critical Minerals List in February 2024. Despite this strategic designation, Mr. Wilson questioned why the Goldfields region is being overlooked compared to other industrial hubs. “Are jobs in the Hunter Valley worth more than in the Goldfields?” he asked, noting that no equivalent support has been offered to the nickel industry despite its vital role in the global energy transition.
Beyond the immediate need for a bailout, Mr. Wilson criticized the economic pressures driving these industries to the brink. He argued that the government’s “safeguard mechanism” and rising energy costs are destroying the viability of heavy industry, effectively forcing taxpayers to subsidize businesses that have been made uncompetitive by federal policy. This echoes long-standing concerns from the federal opposition, which previously sought a Senate inquiry into the survival of Australia’s metals manufacturing sector.
The Kalgoorlie request follows several high-profile interventions by the Albanese government to prevent industrial collapses, including rescue packages for Glencore’s Mount Isa copper smelter and Nyrstar’s facilities in Tasmania and South Australia. Resources Minister Madeleine King has been asked whether a similar package is being considered for the Kalgoorlie smelter, as the local community waits to see if the government will commit the funds necessary to revive the site.
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Original article and photo by "ABC News"
