Controlling the Nickel Pulse: Unveiling Indonesia's Ambitious Cartel Plan

The following article gives key takeaways from our Battery Metals interview series held on July 12, 2023, featuring guest Mark Selby, Chairman & CEO of Canada Nickel, are as follows. Selby, with a remarkable track record of securing over $100 million in financing and steering nickel-cobalt projects to the brink of construction, is a highly regarded figure in the industry. His significant roles at RNC Minerals have been instrumental in advancing the Dumont nickel-cobalt project, considered the world's second-largest nickel reserve and ninth-largest cobalt reserve. Moreover, Selby's impactful contributions at Inco and Purolator Courier since 2001 reinforce his eminent position as a leading expert in the nickel industry.

Nickel Market Landscape

Currently, the nickel market sees prices oscillating in the $20,500 - $21,000 range. With the London Metal Exchange (LME) inventories illustrating a decline to less than 40,000 tonnes after a recent bump, nickel reserves are at surprisingly low levels. The robust performance and relatively low supplies suggest promising investment opportunities in public nickel companies.

Indonesia's Potential Nickel Cartel

Indonesia, a country rich in resources, is leading the way in proposing a global nickel cartel. The Indonesian Investment Minister Bahlil Lahadalia has been engaged in intense discussions with various undisclosed countries, intending to operate similarly to the Organization of the Petroleum Exporting Countries (OPEC). This proposed organization aims to stabilize the nickel market, a key ingredient for electric vehicle (EV) batteries.

While the details of the proposal are still under wraps, three countries have reportedly shown interest in the initiative, perceiving it as a beneficial concept. However, there have also been controversies surrounding Indonesia's nickel exports. The Corruption Eradication Commission (KPK) recently revealed that about 5.3 million tonnes of nickel ore were illegally exported to China from January 2020 to June 2022.

Ardea Resources: A Company to Watch

Ardea Resources, an Australian public company, has recently been the talk of the industry. The company signed a non-binding Memorandum of Understanding (MOU) with a Japanese Consortium comprising Sumitomo Metal Mining, Mitsubishi Corporation, and Mitsui & Co. The consortium aims to develop the Kalgoorlie Nickel Project - Goongarrie Hub, with the strength of SMM in HPAL processing making them a logical partner for the venture.

The resource estimate for Ardea Resources' Kalgoorlie Nickel Project stands at 854Mt at 0.71% Ni and 0.045% Co, which equates to over 6 million tonnes of contained nickel. Different from the laterite found in tropical areas like Indonesia, this is Australian laterite. Mining optimization studies project a production of approximately 30,000t of nickel and 2,000t of cobalt per year for more than 40 years.

Key Personnel Changes in the Nickel Industry

Mark Cutifani, a well-known former Sudbury mining executive, has taken on a new role as chair of the newly formed Energy Transition Metals Board with Vale Base Metals. The company is among the world's largest producers of responsibly-sourced nickel, copper, cobalt, and platinum group metals.

Promising Results from Poseidon Nickel

Poseidon Nickel, another public company, has shown promising results from its focus at Silver Swan/Black Swan. New targets at Maggie Hays West have intersected nickel at the base of the WUU, yielding encouraging results. As the industry continues to grow and evolve, companies like Poseidon Nickel continue to represent attractive investment opportunities in the nickel space.

In conclusion, the current landscape of the nickel industry, with promising prospects and advancements, suggests that now may be the opportune time for investing in public nickel companies. While it is always essential to conduct due diligence before making any investments, the potential rewards in the current nickel market are noteworthy.

About Canada Nickel

Canada Nickel Company Inc. is spearheading the progression of the latest nickel-sulphide projects. Their goal is to meet the escalating demands of the electric vehicle and stainless steel markets for nickel. The company has sought to trademark the terms NetZero Nickel™, NetZero Cobalt™, and NetZero Iron™ across various jurisdictions. Additionally, they are working on developing methods for producing net zero carbon nickel, cobalt, and iron products. By operating in low political risk jurisdictions, Canada Nickel offers investors a valuable opportunity to leverage nickel. Currently, the company is primarily supported by its fully owned Crawford Nickel-Cobalt Sulphide Project, located in the prolific Timmins-Cochrane mining camp.

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