Chalice questions critical minerals tie with Indonesia

afr.com:

Kalgoorlie | The Tim Goyder-backed Chalice Mining was surprised by the Albanese government’s move to work with Indonesia on critical minerals supply chains given the South-East Asia nation competes with Australian nickel producers and has an inferior record of environmental oversight.

Chalice boss Alex Dorsch said the environmental issues in Indonesian nickel were known to the battery minerals supply chain, including carmakers and their customers.

Tim Goyder, left, and Alex Dorsch, chairman and CEO of Perth-based Chalice Mining. Trevor Collens

The Commonwealth and Western Australia governments talked up critical minerals pacts with Indonesia soon after Chalice started looking in earnest for a heavyweight partner. Chalice made one world’s biggest nickel sulphide discoveries and Australia’s largest platinum group elements discovery on the doorstep of Perth.

The hunt for partners to develop that discovery is progressing.

Mr Dorsch said some carmakers were troubled by environmental issues unfolding in Indonesia’s nickel laterite operations largely controlled by China.

“The North American players and European carmakers are probably the most averse to that at the moment, but they have a dilemma in that if they don’t utilise Indonesian nickel, there is really nowhere near enough for them to create an EV industry,” he said.

Mr Dorsch was disappointed that the Albanese government left nickel off its official list of critical minerals.

“It was a real surprise to see Australia’s government not immediately put nickel on the critical minerals list. That was disappointing, but I believe you know that the case is going to get stronger and stronger over time just given the fact that the vast majority of battery electric vehicles still