Kambalda locals remain hopeful despite nickel crisis threatening jobs and future of small mining town

As Australia’s nickel industry crumbles, the future of a small mining town 60km out of Kalgoorlie hangs in the balance. But locals are resilient, remaining hopeful their close-knit community can weather the storm. The red-dirt setting of Kambalda is nestled between nickel-mining company outposts, with many of the town’s 1700-strong population sustained by the industry. But the historic lifeblood of Kambalda is trickling to a halt as a flood of cheap Indonesian nickel pushes prices down. It comes after revelations from BHP Nickel West this week that it is considering shuttering its entire WA operation after the announcement in January that it will close its Kambalda nickel concentrator by June. And Andrew Forrest-owned Wyloo Metals made it public on January 22 that it will wind down its Kambalda operations by May 31 — putting more than 250 jobs on the line. If BHP Nickel West follows through on putting its operations into a “period of care and maintenance” another 3300 WA jobs could be on the chopping block. In a town where even the pub is named after the now plummeting mineral, Kambalda is poised to grapple with significant change in the months ahead. Kambalda Hotel and The Nickel Bar owner Steve Cole said no matter the price of nickel he will keep operating “business as usual”. “We haven’t been affected at all and we don’t expect to be . . . we’re busier now than before the nickel scare,” he said. “Historically Kambalda has been reliant on nickel, but now there are a variety of minerals the world needs and we supply. “The gold-mining companies locally are always expanding and are all screaming for people — this is the ideal time for them to employ skilled workers from the nickel industry.” The mining town is bolstered by gold operations including St Ives Gold Mine and Karora Resources Beta Hunt Mine. Dave’s Old and New shop owner David Rainsford, who’s been in Kambalda for 17 years, believes gold will become the lifeline of the town while the nickel price remains low. “If the gold price was not up I could understand that it would affect the town, we’re lucky with that,” he said. “I know a lot of people have moved to the town because of nickel — it may affect them — they may move out or they may go into the gold industry. “There are still a lot of opportunities there for them, there’s plenty of jobs out there.” Kait Foale has lived in Kambalda since she was a toddler and said she has seen the town ebb and flow with the mining industry. She said while the crumpling nickel industry might have an impact — she believes the town’s community spirit will pull them through. “The locals who have been affected will be able to easily find work because we’re a close community, we look out for each other,” she said. “We do have a lot of gold around which I think will help keep Kambalda afloat so I don’t think too many locals are overly concerned.” Ms Foale works for a local nickel facility which has recently announced it will close. While she will continue to work there part-time she said the company has taken steps to help find alternative employment for those they have not retained. “The local gold companies have been very supportive of the local nickel companies in retaining the staff that their companies could not,” she said. “I think you’ll see a little bit of a hit but I don’t think it’ll be massive . . . especially because now we’re not a purely residential-based town, we do have a lot of FIFO.” Goodnews Newsagency owner Susan Schoch has been a Kambalda local for 46 years and chats with a steady stream of customers over her counter every day as they come in to check their lotto tickets and buy the newspaper. While many in town remain in high spirits despite the failing nickel industry, Ms Schoch said her customers have mixed emotions about the town’s future. “A couple of people come in and say they are a bit concerned, and then another couple of people come in and say, ‘Well, we’ve been here a long time we just live through it like we do everything else’,” she said. “It won’t affect me, I’m just going to keep plodding along . . . I have to keep the shop open because I just love people, I love my job and I love seeing people.” Long-time local and owner of the Two Shovels Gardening Service Ben Cloughessy said for him the cracks in the nickel industry are “daunting” but he is not going anywhere. “It’s scary times but my gut feeling is that it’s gonna be okay,” he said. “I’ve lived here for a long time and I’ve seen it go up and down — it generally works in a wave. “My plan is to stick around so that should give you some insight as to how I really feel.” The string of grim revelations from key players in WA’s nickel industry has sparked action from the Federal and State Governments with hopes of bolstering the sector. The Cook Government has announced plans to offer nickel miners a lifeline 50 per cent royalty deferral for 18 months in a bid to support nickel miners in their “hour of need”. “The nickel industry supported almost 10,000 jobs, and generated sales of more than $5 billion last financial year,” WA Premier Roger Cook said. “Protecting local jobs is a key priority for my Government, and we recognise retaining our value-add, critical minerals sector is a key part of our plan to diversify WA, and set it up for future success.” The relief comes after Federal Resources Minister Madeleine King reclassified nickel as a critical mineral list on Friday, allowing nickel companies access to $4 billion in Commonwealth loans and bonds. While Kambalda locals brace for change as the nickel industry’s future remains in doubt, the Kambalda Hotel and The Nickel Bar owner said his pub’s doors will remain open. “We’re in it for the long haul,” Mr Cole said. “Kambalda is an amazing little town, its people are very resilient and locals look after each other.”