Page 93 - pd289-Dec20-mag-web_Neat

Comprehensive Supply Chain Solutions

Nickel West

transformed

ast year saw 70% of the nickel metal
Lproduced by Nickel West sold to battery
manufacturers, making BHP Ltd one of the
world’s leading suppliers of nickel to the bat-
tery sector.
And with demand for nickel only set to
increase in the next decade, Nickel West
– owner of the Mt Keith and Leinster opera-
tions – has the wheels in motion to ensure
it has ample material to feed a hungry mar-
ket.
Over the past three years, Nickel West
has delivered a 90% increase in nickel
reserves to 1.74mt in Western Australia’s
Northern Goldfields, a figure which ex-
cludes Honeymoon Well.
“Honeymoon Well is one the first in-
vestments that we have started making to
create scale and realise Nickel West’s full
potential. Honeymoon Well significantly
enhances our position in one of the world’s
major nickel sulphide provinces. Several
deposits are already under consideration
with the Wedgetail deposit likely to be first
to be developed,” Nickel West asset presi-
dent Eddy Haegel said.
“There are also several disseminated sul-
phide deposits in the style of Mt Keith and Eddy Haegel
Yakabindie ore types being considered in-
cluding Corella, Hannibals and Harrier. Ad- batteries, making cars and other electrifica- in the 2030s. At Tesla’s recent battery day,
ditionally, we acquired the remaining 50% tion possible. Not surprisingly we expect Elon Musk flagged the enormous demand
share in Albion Downs JV giving us 100% nickel in battery demand to surge from that will come for nickel as this decade un-
ownership and providing us exploration ac- around the mid to late 2020s. We are at the folds. His call for nickel miners to grow and
cess to these tenements.” beginning of a revolution that will transform grow quickly offers real evidence of the
Haegel said updates on reserve and re- our world and truly increase demand for place that nickel has as a strategic battery
sources at Honeymoon Well would be pro- nickel. It will however not just be any nickel.” metal going forward.
vided in due course, while giving delegates Of the 2.4 mtpa nickel produced globally, “A few years ago, we were introduced to
at Diggers an insight into BHP’s thinking about 1.4mt is Class 2 nickel – NPI or fer- the Tesla Gigafactory – 30GW/hr battery
around the nickel sector. ronickel – material that won’t be converted plant, now the conversation at Tesla is on
“In our central energy view, we expect to to battery grade on the basis of conversion the urgency of reaching terawatt hours of
see the cumulative demand over the next costs, Haegel said. production.”
30 years at 250% of that of the past 30 Meanwhile, the 630,000 tpa of Class 1 Nickel West’s reaction to the nickel sector
years. Should the global response accel- nickel produced around the world cannot in the past three years has been almost as
erate, and warming be kept to 1.5 degrees be readily dissolved to form nickel sulphate. quick and sharp as the rise in price for the
centigrade then nickel again outperforms “So, the growth we speak to will come commodity every time Musk mentions the
with a cumulative demand reaching 350%,” from either nickel powder producers metal.
he said. like BHP Nickel West, which is already Nickel West’s rejuvenation in the BHP
“Nickel is a standout mineral for decar- the world’s largest powder producer, or group is set to take another course as com-
bonising the world. It is a secure position from cathode producers adjusting their missioning of its nickel sulphate plant in
because no matter what metals or com- flowsheets to produce powder or liquid sul- Kwinana ramps up.
bination of minerals are tested in lithium- phate or from an expansion of HPAL, most Stage four commissioning, which entails
ion battery cathodes, nickel produces the likely in Indonesia with its incumbent chal- adding liquor to the process, is set to start in
highest energy density. This is a powerful lenges,” Haegel said. early 2021 with first crystals to follow within
insight as to why nickel has such a positive “This will require significant investment the first half of the calendar year.
future. and we expect that it will induce prices of
“It [nickel] is the workhorse for lithium-ion Class 1 nickel later in this decade or early – Mark Andrews

aUSTRaLIa’S PaYDIRT DeCeMBeR 2020 - JaNUaRY 2021 Page 93