The sharp decline in nickel prices over the past year, driven by increased Indonesian supply, has impacted Australian nickel producers, leading to mine closures, production cuts and asset write-downs in recent months.
Australia is the world's fifth-largest producer of mined and refined nickel, led by BHP Group.
Below are the measures taken by nickel producers and developers to deal with the recession:
* Canada's First Quantum Minerals said Monday it will cut jobs and production at its Ravensthorpe mine in Australia due to a “significant” decline in prices expected to last three years.
* Panoramic Resources entered voluntary administration in December. On January 8, officials said operations at the Savannah Nickel Project would be suspended because “the potential for a shift in operations and financing in the near term is low.” The project remains for sale.
* Battery materials maker IGO said in December it expects to record an additional write-down on its Kosmos nickel project when it goes public on January 31, on top of a write-down of about A$1 billion in fiscal 2023.
* BHP, the world's largest listed miner, is evaluating options to refurbish a major smelter and expand mines in Australia as it builds the West Musgrave mine it acquired in its $6.4 billion takeover of Oz Minerals.
