Shifting Tides: Russia and China's Influence on Nickel Flow and Pricing

This summary highlights the key points from our latest Battery Metals interview series on 15th June, 2023, featuring Mark Selby, Chairman & CEO of Canada Nickel. Selby has successfully raised over $100 million and brought nickel-cobalt projects to construction-ready stages. His extensive experience includes senior positions at RNC Minerals, where he led the development of the Dumont nickel-cobalt project, the world's second-largest nickel reserve and ninth-largest cobalt reserve. Additionally, Selby held roles at Inco and Purolator Courier, establishing himself as a leading nickel authority since 2001.‍

Shifting Tides: Russia and China's Influence on Nickel Flow and Pricing

The nickel market, refusing to flirt with its lows, saw an almost 5% leap in a single day, bringing the price back up to over $22,000 per tonne. This is largely attributable to a boost in base metals amidst an increasingly tighter cycle for US interest rates. The emerging influence of Russia and China is also prompting notable shifts in the nickel industry, reshaping the flow and tightening prices globally.‍

Nickel Compression and Discounts in China‍

A closer look at the Chinese market reveals compression underway, as NPI discounts show a slight decrease and sulphate discounts take another meaningful step toward tightening. Interestingly, while pure nickel premiums declined – albeit slightly, this was accompanied by the first significant inflow of Russian nickel into China, further underlining the expanding influence of these global powers in the nickel industry.‍

Key Developments in Nickel Industry‍

A strategic move in the industry is the sale of a 19.99% equity interest by Nickel Industries to the Indonesian heavy equipment and mining contractor, United Tractors, for $943 million. This acquisition will also likely involve United Tractors securing a 20% interest in the upcoming Excelsior Nickel Project, which is now projected to initially produce 72,000 tonnes of nickel per annum 9 (or 2.2% of global Nickel production in 2022).

​​Poseidon Nickel's Resource Upgrade and Restart‍

With a resource upgrade from 0.63% to 0.72% nickel, Poseidon Nickel has announced a restart in production. The upgrade translates to 189kt contained nickel, including a 48% increase in the contained nickel in the Measured and Indicated Resources to 16Mt at 0.73% nickel for 118kt contained nickel.‍

Exploring New Possibilities‍

In a significant turn of events, Ero Copper announced one of the most interesting nickel discoveries of the last several years in their Umburana system in Brazil. Despite being primarily a valuable copper company, Ero Copper's discovery in the nickel sector has caused quite a stir in the industry. The highlights of this discovery include numerous high-grade intersections, marking an important milestone in nickel exploration.‍

Adavale's Sulphide Discovery near Kabanga‍

Adavale has reported significant findings of massive sulphides in a project located near Kabanga. However, cautious optimism is advised, as the reported drill hole is proximate to a historic mid-1990s hole. The ultimate potential of this discovery will be revealed upon stepping out from the historic drilling area.‍

The Scottish Nickel Potential: Aberdeen Minerals‍

A private company, Aberdeen Minerals, is drawing attention to nickel in Scotland. Their project, which saw work in the 1960s and 1970s, may be of lower grade but holds potential for higher grades. The company has encountered intervals of net-textured and massive sulphides within a broader zone of disseminated style mineralisation, with individual sample grades up to 2% nickel and 1.2% copper suggesting the potential for higher grades.‍

Conclusion‍

As nickel continues to be a key component in modern technologies, notably electric vehicle batteries, its global demand is expected to grow. Russia and China's strategic maneuvers, alongside emerging exploration and mining projects worldwide, are set to alter the course of the nickel industry. Understanding these shifts and the factors behind them is crucial for predicting the industry's trajectory. This is a fascinating time in the nickel market, and these developments could have far-reaching implications for global trade and industry dynamics.‍

About Canada Nickel‍

Canada Nickel Company Inc. is progressing with its newest batch of nickel-sulphide ventures to supply the rapidly expanding electric vehicle and stainless steel industries with the necessary nickel. The company has sought to trademark the phrases NetZero Nickel™, NetZero Cobalt™, and NetZero Iron™ across various legal territories, concurrently developing processes to produce net zero carbon nickel, cobalt, and iron products. Offering investment opportunities linked to nickel in jurisdictions with low political risk, Canada Nickel firmly grounds itself with its wholly-owned premier Crawford Nickel-Cobalt Sulphide Project, located in the highly productive Timmins-Cochrane mining region. 

In our latest interview with Mark Selby, he shares Canada Nickel is extending the engineering phase of the feasibility study to incorporate carbon storage capacity, aiming to capture a million tons of CO2 per year and maximize tax credits and rising carbon prices, while positioning itself as a significant carbon storage destination.

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