Aussie nickel prices could rise by as much as 20pct in coming year

Aussie nickel prices could rise by as much as 20% in the coming year according to a leading industry analyst.

Mr Carey Smith from Alto Capital said that the falling Aussie dollar coupled with Indonesia's export ban all bode well for producers. Around a third of the world's known nickel deposits lie in Australia and in WA in particular.

Mr Smith said that producers now have to take the opportunities that higher prices offer and re-invest in exploration here at home. I wouldn't be surprised if we see nickel average about another 10% higher in US dollar terms, so say USD 20,000 (US a tonne) but for the Australian producers, I also expect the Australian dollar to weaken a bit over the next 12 months as well so I wouldn't be surprised if we see an actual 20 per cent increase in Australian dollar terms for the nickel price which will certainly add to everyone's bottom line."