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nIcKeL PReVIeW

Nickel frown turned upside down

he 25th Australian Nickel Conference is certain to be like no other in the
T previous quarter of a century. Unprecedented times globally and the changing
nature of nickel demand will provide the backdrop for Australia’s nickel fraternity
to debate where the industry is heading. In a “precursor” to the conference, some
of the sector’s leaders joined together at the latest Paydirt Unlocked luncheon to
give a taste of the themes and topics to be explored at this year’s Australian Nickel
Conference, set to take place at the Pan Pacific Hotel, Perth on October 6.

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nickel price high for 2020 loomed as an Currently, about 65% of nickel produced 17,000t nickel production in 2020.
A esteemed panel of mining sector execu- ends up in stainless steel products/con- In researching nickel market dynamics
tives gathered for the latest edition of Pay- struction material and with rising middle to justify another tilt at Ravensthorpe, the
dirt Unlocked at the Pan Pacific Hotel in classes around the world, demand is not First Quantum identified it had a “strategi-
Perth in mid-August. expected to taper in the next decade. cally significant” asset in the battery space
Preceding the lunchtime panel dis- A large portion of stainless steel is pro- on its hands.
cussion, nickel rose to $US6.73/lb, or duced from the growing, low-grade nickel However, determining the right path and
$US14,862/t, as investors feared supply pig iron (ferronickel) sector which grew out players to align with in the battery sector
issues in China on the back of escalating of the nickel price’s last major bull run. has been a more cumbersome undertaking
demand for the base metal in the country. “Nickel supply from sulphide mines and for First Quantum.
“Stockpiles of nickel ore at Chinese ports oxide laterite mines was always the only “It is a fragmented market and quite dif-
shrank to their lowest level in two years, source and could be seen to be running ficult to try and follow,” he said. “Each one
last week. Stainless steel mills in China short,” First Quantum Minerals Ltd chair- of them wants products that vary and that
have been keen to snap up any material man Philip Pascall said. “Costs [for nickel is what we are looking to understand well
as stimulus measures boost demand for pig iron] seem to be remarkably low, so it and the economics of it. I think it is true to
its products. Copper was caught up as the provides us quite tough competition. say that we would be a lot better off if we
optimism spurred investor demand in risky “Lateritic deposits have been pretty diffi- produced an upgraded product; there are
asset classes,” ANZ Research noted in late cult to bring onstream and I don’t know that strategic processes we’re looking at.”
August. anyone would do that again particularly at First Quantum’s approach to capitalising
Reports of supply constraints in China these sorts of prices; it really only started on the opportunities created by the societal
were coupled with increasingly louder calls when there was no alternative source. demand for eco-friendly, battery-powered
from Elon Musk for miners to front-up with “Pig iron can’t be used in the battery mar- transport and energy solutions is in line with
environmentally friendly nickel material for ket so there is an opportunity there in spe- peers.
his Tesla Inc. batteries. cialised areas.” IGO Ltd has assessed, but idled, produc-
Seemingly the sweet metal to be in now After mothballing operations in 2017, First tion of nickel sulphate material as part of its
and the future, companies are jostling for a Quantum rebooted the Ravensthorpe pro- strategy to be a globally relevant organisa- australiannickelconference.com
plum position in the ever-evolving and com- ject on Western Australia’s southern coast- tion in the clean energy mining space.
plex nickel market. line earlier this year and has guided 15,000-
To present, exhibit or attend as a delegate please contact Mitchelle Matambo

Page 80 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT on (+61) 8 9321 0355 or email mitchelle@paydirt.com.au