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Call to bail out Australia's last remaining nickel smelter

The entrance to the Kalgoorlie Nickel Smelter, which has been on care and maintenance since late 2024.   (ABC Goldfields: Jarrod Lucas) The future of BHP's Kalgoorlie Nickel Smelter in Western Australia remains unclear, with a decision expected within the next six months. WA Liberal MP Rick Wilson wants the federal government to provide financial […]

By deepak · August 19, 2026 · 2 min read

The entrance to the Kalgoorlie Nickel Smelter, which has been on care and maintenance since late 2024.   (ABC Goldfields: Jarrod Lucas)

The future of BHP's Kalgoorlie Nickel Smelter in Western Australia remains unclear, with a decision expected within the next six months.

WA Liberal MP Rick Wilson wants the federal government to provide financial support, just like it has for four other metal smelters elsewhere.

BHP is expected to finish a review of its mothballed Nickel West operations by February 2027. 

A WA Liberal MP says Australia's only nickel smelter should be next in line for a government bailout as mining giant BHP mulls its future.

The company's Kalgoorlie Nickel Smelter was mothballed in 2024 after 51 years of operations.  

Rick Wilson, whose federal electorate of O'Connor includes Kalgoorlie-Boulder, is pushing for the same sort of Commonwealth support for the smelter that has been provided for metal smelters elsewhere.

In the past year, the federal government has committed a combined $1.67 billion to ensure four smelters on the east coast stay open — including a $2.5 billion deal announced last week to secure the future of Tomago Aluminium.

The Kalgoorlie Nickel Smelter was officially opened by former prime minister Gough Whitlam in 1973. (ABC Goldfields: Jarrod Lucas)

Nickel was added to the government's Critical Minerals List in February 2024.

"Are jobs in the Hunter Valley worth more than in the Goldfields?" Mr Wilson said.

"No support has been offered for the nickel industry which is also classified as a strategically important mineral.

Neil Thomson, Rick Wilson, Matt Canavan and Goldfields mining industry stalwart Graham McGarry at the smelter in December. (Supplied: Facebook/Rick Wilson)

"The bigger picture is that the safeguard mechanism is destroying the viability of our heavy industries and forcing the taxpayer to subsidise industries which the government's policy have made unviable."

Last year, the federal opposition unsuccessfully lobbied for a Senate inquiry into Australia's metals manufacturing industry, claiming 10 smelters and refineries across Australia were in danger of closing due to high energy prices.

Source: Read the original article on www.abc.net.au