Nickel Industries Limited (ASX: NIC) has released its Corporate Governance Statement for the financial year ended 31 December 2025, detailing its adherence to the ASX Corporate Governance Council’s Principles and Recommendations and identifying areas where it did not fully comply.
Nickel Industries operates integrated nickel processing assets supporting global stainless steel and battery supply chains. [News Decoder]
The board-approved statement, dated 23 February 2026, outlines the Company’s governance framework, committee structures, risk management oversight and disclosure practices. It also highlights specific departures from ASX best-practice guidance, including board independence levels and performance evaluations.
The update is relevant for institutional investors and governance-focused shareholders assessing board composition, oversight quality and risk management practices within the Australian resources sector.
Key Governance Highlights
Nickel Industries confirmed compliance with several core governance principles, including:
- A formal Board Charter clearly delineating responsibilities between the board and management.
- An established Audit Committee comprising three non-executive directors, with a majority classified as independent.
- Adoption of a Continuous Disclosure Policy aligned with ASX Listing Rule 3.1.
- Formal Whistleblower, Anti-Bribery and Corruption, and Securities Trading
- CEO and CFO declarations confirming the integrity of financial statements prior to board approval.
The Audit Committee oversees financial reporting, internal controls and external audit processes. Qualifications and meeting attendance details are disclosed in the Company’s annual report.
Areas of Partial Compliance
The Corporate Governance Statement identified several recommendations not fully met during the reporting period:
- Board Independence: Of nine directors, two are classified as independent, below the ASX recommendation for a majority-independent board.
- Chair Independence: The Chair is not considered independent, although the roles of Chair and Managing Director remain separate.
- Nomination Committee: The committee has not been fully reconstituted following director retirements in 2023.
- Board Skills Matrix: A formal board skills matrix has not been disclosed.
- Performance Evaluations: Formal board and senior executive evaluations were not undertaken in 2025.
- Gender Diversity Targets: While a Diversity Policy exists, measurable gender diversity objectives have not been set.
The board stated that it believes the current mix of industry experience remains appropriate for the Company’s operational profile and will continue to review governance structures as required.
Risk Management and Internal Controls
Nickel Industries maintains a Risk and Sustainability Committee responsible for oversight of the Company’s risk management framework. The board reviews the framework annually to ensure it remains effective and aligned with the Company’s risk appetite.
Nickel Industries disclosed exposure to environmental and operational risks, overseen by its Risk and Sustainability Committee. [Climate Rights International]
The Company does not operate a standalone internal audit function. Instead, the Audit Committee provides independent oversight of financial and risk management systems.
The Company disclosed exposure to economic, environmental and social sustainability risks, particularly given its operations across Australia and Indonesia. Risk mitigation measures include:
- Monitoring rolling cash flow forecasts.
- Maintaining relationships with regulated banking institutions.
- Implementing environmental management programs.
- Engaging with local and regional community stakeholders.
Remuneration and Governance Oversight
The Remuneration Committee, chaired by an independent director, oversees executive and non-executive remuneration frameworks. Policies governing remuneration and equity-based incentive arrangements are disclosed separately in the annual report.
Under its Securities Trading Policy, participants in equity-based schemes are restricted from entering into hedging arrangements without prior approval.
Market Context and Trading Performance
Nickel Industries operates in a commodity environment shaped by electric vehicle demand, stainless steel production and global battery supply chain dynamics.
As of the latest trading session, shares in Nickel Industries were priced at $0.945, down $0.069 or 6.9% for the day. The Company has a market capitalisation of approximately $4.40 billion, with daily volume exceeding 12.4 million shares. The bid-offer range during the session was $0.940 to $0.945.
Nickel Industries Limited Share Price [ASX]
Governance disclosures remain a focal point for institutional investors as capital markets increasingly integrate ESG metrics into valuation frameworks. Board independence, diversity targets and risk oversight practices continue to attract heightened scrutiny within the Australian resources sector.
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Outlook
The 2025 Corporate Governance Statement confirms that Nickel Industries has established a structured governance framework aligned broadly with ASX principles, while acknowledging specific areas requiring improvement.
For investors and analysts, the disclosure provides transparency regarding board composition, risk oversight and compliance practices during a period of commodity market volatility and operational expansion.
The Company indicated it will continue reviewing its governance framework in line with evolving best-practice standards and shareholder expectations.
FAQs
- What does Nickel Industries Limited do?
Nickel Industries Limited is an ASX-listed nickel producer focused on downstream nickel processing operations. The company primarily invests in and operates rotary kiln electric furnace (RKEF) projects that produce nickel pig iron (NPI), a key input for stainless steel production. It also has exposure to nickel matte production used in electric vehicle (EV) battery supply chains.
- What is Nickel Industries’ ASX ticker?
Nickel Industries trades on the Australian Securities Exchange under the ticker NIC.
- Where does Nickel Industries operate?
The company’s key operations are located in Indonesia, one of the world’s largest nickel-producing regions. Indonesia plays a critical role in global nickel supply, particularly for stainless steel and EV battery markets.
- What is nickel used for?
Nickel is primarily used in:
- Stainless steel production (the largest demand segment)
- Electric vehicle battery manufacturing
- Alloys and specialty metals
- Industrial and construction applications
Growing EV demand has increased global focus on nickel supply chains.
- What is the ASX Corporate Governance framework?
The ASX Corporate Governance Council sets out Principles and Recommendations that guide listed companies in areas such as:
- Board structure and independence
- Risk management
- Disclosure and transparency
- Remuneration practices
- Diversity policies
Companies are required to disclose whether they comply with these recommendations or explain why they do not.
- Why is board independence important for investors?
Board independence is considered important because independent directors are expected to provide objective oversight of management. A majority-independent board is generally viewed as reducing conflicts of interest and strengthening governance standards.
- Does Nickel Industries have an Audit Committee?
Yes. Nickel Industries has an Audit Committee comprising non-executive directors. The committee oversees financial reporting integrity, risk management frameworks and engagement with external auditors.
- Does Nickel Industries set gender diversity targets?
The company has adopted a Diversity Policy. However, it has not set measurable gender diversity objectives during the most recent reporting period.
- Does Nickel Industries have an internal audit function?
The company does not operate a standalone internal audit function. Instead, governance, risk management and internal control oversight responsibilities are managed by the Audit Committee and board.
- What factors influence Nickel Industries’ share price?
Nickel Industries’ share price may be influenced by:
- Global nickel prices
- Stainless steel demand
- Electric vehicle battery demand
- Indonesian mining and export policies
- Company production performance
- Broader commodity market conditions
