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NICKel CoNFeReNCe PReVIeW

Wave of

optimism spreads

through nickel

There will be a definite upbeat feel in the air around the Australian Nickel

Conference (October 15 at the Pan Pacific Perth) this year with the base metal’s
recent price run giving the sector a much-needed boost.

he LME nickel price hit $US18,620/t and Panoramic Resources Ltd are bringing
Ton September 2, having opened the their operations out of mothballs and Black
year at $US10,435/t. The rise was fuelled Mountain Mining Ltd, Poseidon Nickel Ltd
by falling LME and SHFE warehouse and Ardea Resources Ltd all have produc-
stocks and geopolitical uncertainty in In- tion plans.
donesia and the Philippines. In August, Even nickel explorers are basking in
Indonesia said it would bring forward a some rare market sunshine with St George
ban on the export of raw nickel ore by two Mining Ltd and Legend Mining Ltd enjoying
years, starting in January 2020. In Sep- recent share price spikes.
tember, the Government of Bangsamoro For Western Areas managing director
Autonomous Region in Muslim Mindanao Dan Lougher, the prevailing market has
(BARMM) suspended operations of all ushered in a new dimension to investor
four mining companies in its jurisdiction meetings; where once discussions were
on environmental grounds. about survival, now the queries are around
The geopolitical shifts and subsequent expansion and the Welshman couldn’t be
price rise has added impetus to the West happier to field the questions.
Australian nickel sector’s recent recovery. “The last results roadshow we did, in
Established producers such as Independ- February/March, there were a lot of ques- Dan Lougher
ence Group NL and Western Areas Ltd tions about why we were spending money
have enjoyed strong investor support on the on [development project] Odysseus now. the hedge funds which can be erratic and
back of nickel’s role in the emerging EV nar- During this latest roadshow everyone was focus on short-term opportunities.”
rative. It is a story BHP Ltd has fully commit- asking if we would accelerate our growth Lougher’s comments speak to the wide-
ted to. Just two years ago the company was projects,” Lougher explained to Paydirt, spread acceptance that a structural change
desperately looking for a buyer for its Nickel straight after his return from overseas du- is coming in the nickel sector, even if short-
West division but today the WA-based ties. term factors are driving the current price
group is a darling of the parent company “We hit London just as the nickel price surge.
with a major expansion, including a nickel went through the roof [end of August] so the For years industry dynamics have been
sulphate production facility at its Kwinana timing was good and there are a few groups dominated by the stainless steel sector, by
site is now operational. particularly interested now. There are lots far the biggest consumer of nickel produc-
Further down the development pipeline, of inquiries coming in and most groups are tion. However, the emergence of the EV
companies such as Mincor Resources NL interested in the fundamentals, rather than narrative has tipped projection of future

Page 82 OCTOBeR 2019 aUSTRaLIa’S PaYDIRT