Federal Liberal MP Rick Wilson is urging the federal government to extend financial support to Western Australia’s mothballed Kalgoorlie nickel smelter, questioning why east coast heavy industries have received major subsidies while the nickel asset remains left behind.
The push comes as mining giant BHP prepares to wrap up a review of its Nickel West operations by February 2027, ABC News reported.
The facility, which opened in 1973, was placed into care and maintenance in 2024 amidst plunging global nickel prices, displacing most of its 3,500-strong workforce.
In its latest annual report, BHP confirmed it is evaluating options ranging from a restart or continued suspension to a potential divestment or permanent closure.
Wilson pointed to recent government commitments totalling AU$1.67 billion for east coast smelters, including a AU$2.5 billion package to secure the Tomago Aluminium smelter in New South Wales, as evidence of an uneven playing field.
“Are jobs in the Hunter Valley worth more than in the Goldfields?” Wilson said, noting that nickel was added to the federal Critical Minerals List in early 2024.
“No support has been offered for the nickel industry which is also classified as a strategically important mineral.”
In response, the office of Industry Minister Tim Ayres stated that the federal government continues to collaborate with state governments and facility owners, describing nickel as playing a key role in Australia’s industrial future.
However, local leaders remain skeptical of direct government interventions. City of Kalgoorlie-Boulder Mayor Glenn Wilson argued that taxpayer bailouts act as short-term “sugar hits” rather than sustainable solutions for regional communities.
The wider Western Australian nickel sector continues to face headwind pressures. IGO’s Nova nickel mine is scheduled to close by year-end, while Glencore recently wrote down the value of its nearby Murrin Murrin operation to zero.
