![Navigating the future: challenges and innovations in the Australian nickel industry](https://resourcesreview.com.au/wp-content/uploads/2024/07/shutterstock_2027183576-1000x667-1.jpg)
The Australian nickel industry is currently grappling with significant challenges, as highlighted by experts from Monash University.
They emphasise the importance of balancing mine closure risks and investing in recycling technology to ensure long-term sustainability and competitiveness.
Professor David Whittle from the Faculty of Engineering at Monash University has raised concerns about the strategic decisions surrounding mine closures.
He points out that with the transition to net zero, the International Energy Agency predicts a substantial increase in demand for nickel.
This makes it crucial for companies to carefully consider their options between pausing operations and permanently closing mines.
“Companies that opt to permanently close mines risk being cut off from the Australian nickel industry at a crucial time,” said Professor Whittle.
He cited the example of San Manuel Copper, one of the USA’s largest copper mines, which was permanently closed by BHP in 2003 when copper prices were low.
By 2006, copper prices had surged, but it was too late for the mine to capitalise on the market recovery.
“It is not hard to imagine that if San Manuel had been put into care and maintenance instead of permanently closed, it may have restarted and made a great deal of money for BHP,” he added.
Dr Parama Banerjee from the Chemical and Biological Engineering department at Monash University has been working on innovative recycling technologies.
Her research laboratory has developed methods to extract nickel from old batteries using novel deep eutectic solvents.
“Monash has developed technology that promises to significantly reduce the cost of extracting nickel from recycled batteries,” said Dr Banerjee.
She highlighted that this technology could enhance the competitiveness of Australia’s nickel mines.
“With rapidly growing demand in most critical minerals markets, there isn’t enough recyclable stock to contribute significantly to overall supply.
“That will change, and we may see recycling contribute up to 30 per cent of overall supply by around 2040 in many markets.”
Dr Banerjee explained that the novel deep eutectic solvents can be customised to extract minerals selectively, are relatively inexpensive, have low environmental impacts, and can potentially be reused multiple times.
“There is potential for the technology to be adapted for use in extracting nickel from nickel ores, and this could be a game changer for Australian nickel miners, who currently use expensive and energy-intensive methods to extract nickel,” she said.
The Australian nickel sector is facing economic pressures due to a dramatic drop in global nickel prices, which have fallen from a high of US$50,000 per metric tonne in 2022 to approximately US$16,500 currently.
This downturn has led to significant financial instability, prompting the Australian government to provide billions in emergency aid and relief from royalty payments to support the industry and protect jobs.