According to the estimate of the Australian Bureau of Resources and Energy Economics (BREE) released on June 27, Australia's nickel production in the financial year 2011-12 is forecast to total 226,000 mt, up 16 percent compared to FY 2010-11, mainly driven by the redevelopment and restart of the Ravensthorpe mine with an annual capacity of 39,000 mt.
The BREE report indicated that in FY 2012-13 mine production is forecast to decline marginally to 221,000 mt as a result of BHP Billiton's plan to decrease mine production at its Nickel West operation in Western Australia from early 2012.
Australia's nickel export volumes are forecast to increase by 14 percent and 8 percent year on year in FY 2011-12 and FY 2012-13, respectively. Nickel export earnings in FY 2011-12 are forecast to decline by 5 percent to $3.9 billion, while in FY 2012-13 export earnings are forecast to increase by 6 percent to $4.1 billion.