Nickel miner Western Areas reported on Tuesday a 64 per cent decline in its first half net profit due to lower prices of the commodity. From July to December 2011, the firm logged a $24.1 million net profit, down from $67.2 million compared to the same period a year ago.

If nickel prices would rebound for the second half of its 2012 financial year, the company said its financial performance would improve.

For the first half, nickel prices averaged $8.51 per pound, down from $11.61 in the preceding six-month period. By January 2012, nickel prices picked up at $9.50. For that period, the firm mined 333,651 tonnes, which is a 9.3 per cent increase. However, net sales of 11,230 were down 4.4 per cent.

"If this continues over the rest of the year, Western Areas shareholders can expect a strong finish to the financial year," Western Areas Managing Director Dan Lougher said in a statement.

Another resources sector that has suffered a slump is the aluminium industry with 600 Alcoa workers from the company's Port Henry smelter in Geelong on the brink of becoming jobless.

A group of Alcoa employees and officials of the Australian Workers Union (AWU) went to the Parliament House on Monday to seek government assistance for their colleagues. Alcoa is conducting a five-month review of its Victoria operations with the closure of the smelter in Geelong among the likely scenarios.

Australian Prime Minister Julia Gillard told the Alcoa workers and AWU officials that the federal government is monitoring the situation and keep close contact with the company's management during the review period. While she assured them of government support for innovation and productivity boost, Opposition leader Tony Abbott used the question time in Parliament to hit the government carbon tax.

Mr Abbott pointed out that the manufacturing sector would decreased by 61.7 per cent due to the carbon tax, which is the highest in the world at $23 a tonne.

Ms Gillard emphasised that the Alcoa workers are aware that the reasons behind the slump in the industry which threaten jobs are the high Australian dollar and weak prices.

On Tuesday, another Alcoa delegation had a late morning meeting with Climate Change Minister Greg Combet to ensure the future of their smelter in Geelong. The Alcoa employees would know by June if they could keep their jobs or join the ranks of the growing number of unemployed Australians.

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