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A supply glut of nickel is squeezing Australia out of the market

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RHIANNON SHINE, REPORTER: We’re on our way to Australia’s nickel heartland - Kambalda, just south of Kalgoorlie in WA’s Goldfields.

RHIANNON SHINE: When they first started digging nickel out of the ground around here in the late ‘60s, it was mostly used to produce stainless steel. Recruit some of these guys that are doing it tough because I’m sure they’ve got kids in the school and their wives are in town working and there will probably be a little bit, a bit of nervous tension around.

NICKEL INVESTOR: We’ve put a lot of money, a lot of investment into the ground, and then, we've pretty much, with the change of circumstances this year, we have to change focus a bit now and pretty much all that money that we’ve spent, we are not sure what value we are going to get out of it now. WARREN PEARCE: But I am differentiating between mining and mining and chemical processing. Ultimately, we’re not seeking support for the mining operations, we are seeking support for the processing piece.

RHIANNON SHINE: The Federal Government is also vowing to ramp up its marketing of Australian nickel as a greener alternative to the cheaper Indonesian product.

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