Wt Nickel Discussion Threads

[powereddrones] 10/3/2022 19:41

Update

Tsingshan Holding Group Co., which faces billions of dollars in potential losses on short positions in nickel futures, secured a package of loans from local and international banks to help it meet a wave of margin calls, Bloomberg News reported Wednesday. Authorities directed domestic banks to offer more credit lines to Tsingshan, according to people familiar with the matter.

[hedgehog 100] 10/3/2022 12:22

The distinction between nickel laterite deposits and nickel sulfide deposits is an increasingly important one.

Nickel sulfide deposits have far lower production costs, are greener, and are also far more suitable for use in EV (electric vehicle) batteries. -

Mudd, G M, 2009, "Nickel Sulfide Versus Laterite : The Hard Sustainability Challenge Remains":
" ... sulfide ores are easier to process, through conventional mining, smelting and refining, compared to laterite ores which require intensive hydrometallurgical processing (such as high pressure acid leaching or HPAL). This means that laterite ores typically require substantially more energy and chemicals to produce than sulfide nickel. ..."


"Electric Vehicles: The Dirty Nickel Problem
... Published September 27, 2020
By Cliff Rice

... Nickel is mined from two types of deposits — sulphide and laterite. Sulphide nickel occurs in hard rock that has formed from crystallization of magma with the proper conditions and chemistry. Laterite nickel is a product of the weathering of ultrabasic bedrock under proper conditions of rainfall, drainage, temperature, and slope in the tropics.

Nearly all nickel currently used in batteries comes from sulphide nickel. This is because batteries require nickel of high purity, which is usually obtained from sulphide nickel. Also, sulphide nickel can be mined, smelted, and refined with less environmental impact than laterite nickel. So, when Mr. Musk or other electric vehicle manufacturers indicate they want nickel which is efficient and environmentally friendly, they mean sulphide-sourced “clean” nickel.

The problem part of the “dirty nickel problem” is that sulphide nickel sources are limited. Most known locations with sulphide nickel are already being mined and cannot be readily expanded. Some of these mines are on the surface, but many are subsurface mines, sometimes with the nickel ore being brought up from thousands of feet below ground. Greatly increasing the output from such mines is problematic. Furthermore, recent discoveries of new locations with sulphide nickel have been small and finding them has been costly. So, we should not expect new discoveries to have much effect on sulphide nickel ore supplies.

This leaves us with laterite nickel, the dirty part of the “dirty nickel problem.” Laterite nickel is not just dirty, it is simultaneously dirty in four different ways. First, because laterite nickel ore has lower and variable concentrations of nickel, it takes a lot of energy to smelt it — in fact, many times as much as smelting sulphide ore. This energy is almost exclusively provided by burning coal. Typically, it takes 25 to 30 tons of coal to produce a single ton of nickel. When all the CO2 emissions are counted, smelting and refining laterite nickel releases nearly 90 tons of CO2 for every ton of nickel produced. That means an average electric vehicle with a 50 kg battery, 4 tons of CO2 were released during its production. Depending on the type of power used to charge that battery, that means one would have to drive that car for 4 years to break even on the CO2 footprint based on the manufacture of the battery alone.

Instead of smelting, laterite nickel can also be handled by a lovely-sounding process called high-pressure acid leaching (HPAL). The CO2 produced by HPAL is about one third that of laterite smelting, but still several times as much as even the more carbon-intensive variants of sulphide processing. Not only that, but HPAL produces large amounts of waste — unstable and hazardous tailings, acid slurry, and magnesium sulphate effluent. The difficulty in storing these products in areas of high rainfall (as laterite nickel producing regions are) and earthquake-prone locations has led to the proposal that they should be discharged into the deep sea. This is not an environmentally friendly option. For all these reasons, HPAL is the second way laterite nickel is dirty.

The third way laterite nickel is dirty is through the destruction of tropical rainforest — and not just any rainforest. Because of accidents of climate and geology, laterite nickel deposits are most extensive in Indonesia and the Philippines. These two countries account for 75% of laterite-nickel production. They are also considered biodiversity hotspots in that they are exceptional in the number and uniqueness of species that occur there. Therefore, effective conservation of their biological resources is a high priority.

Because laterite nickel deposits are widespread, low grade, and shallow, strip mining is the only realistic method of obtaining this ore. The first step in strip mining is, naturally, to remove everything growing on the surface. I estimated that over 40% of the nickel mines on the island of Sulawesi in Indonesia stripped intact rainforest to get to the nickel ore. Recent assessments by the United Nations and others have highlighted the accelerating rate of species loss on our planet. Strip-mining for laterite nickel is a threat to efforts to arrest and reverse these trends.

Importantly, due to the geochemistry involved, laterite nickel deposits often form along ridges and hilltops. A moment’s thought is all it takes to predict what will happen when heavy tropical rain falls on ridges and hilltops from which all vegetation has been removed. The rains will wash away any loose dirt, sand, or grit that has been exposed. Indonesia and the Philippines are island nations, and none of the islands with laterite nickel are very large. As a result, sediment washed off of nickel mines is, in short order, carried out to sea. In the tropics, “out to sea” means onto coral reefs. This is the fourth way laterite nickel is dirty nickel. Coral reefs around the world are already in crisis due to rising temperatures, pollution, and exploitation. Sediment settling out of discharge from streams and rivers severely exacerbates these issues. Coral reefs are the rainforests of the sea, and are also important in supporting local livelihoods through fishing and tourism.

So, an environmentally conscious person looking to minimize their personal impact and still meet their transportation needs might view sulphide nickel mining as a kind of necessary evil — necessary for the battery component of an electric vehicle. Laterite nickel, however, can only be viewed as a net loss environmentally and an ugly one at that. Certainly, electric vehicle manufactures cannot live up to their professed good intentions of using “environmentally friendly” nickel if that nickel comes from laterite deposits. ..."

[hedgehog 100] 09/3/2022 20:02

Thanks P.D.

$8 billion ... it kind of puts our modest retail investors losses into perspective!

[powereddrones] 09/3/2022 18:24

hxxps://www.wsj.com/articles/chinese-nickel-giant-tsingshan-faces-8-billion-trading-loss-as-ukraine-war-upends-market-11646765353

Chinese Nickel Giant Tsingshan Faces $8 Billion Trading Loss as Ukraine War Upends Market

[powereddrones] 08/3/2022 21:06

One Of China's Largest Banks Fails To Pay Margin Call After Today's Monster Nickel Squeeze

[powereddrones] 08/3/2022 21:01

Liquidity dropping in all commodities. Expect more surprises to the upside?

A big Chinese Nickel producer had a margin call today. Ouch!

[powereddrones] 08/3/2022 17:24

This is a big story today, and no one is talking about it?

Did anyone cash in and put an order in for a new Lambo?

Though I suspect a few have really lost their shirts today. If you lost a few quid, then think about the people stuck in the short squeeze and on the hook for millions of $$$$.



The London Metal Exchange on Tuesday suspended the trading of nickel after prices more than doubled to surpass $100,000 per metric ton.

.....

“It is a very dangerous market right now because this is a market that is not driven by supply and demand, it is driven by FEAR,” Hansen told CNBC’S “Squawk Box Europe” on Tuesday.

[hedgehog 100] 07/3/2022 10:17

A great recent example of the potential of nickel sulphide projects is Chalice Mining.

ASX-listed Chalice Mining (CHN) 100-bagged, and has a current market cap. of AU$2.7 billion.

"THE OPPORTUNITY

The Julimar Project was stacked in early 2018 as part of Chalice's global search for high-potential nickel sulphide exploration opportunities.

Chalice discovered the Gonneville deposit in the very first drill hole at the project in March 2020, intersecting shallow high-grade PGE-nickel-copper-cobalt-gold sulphide mineralisation. Gonneville is located on private farmland at the southern end of the interpreted >26km long Julimar Complex.

The significant Gonneville discovery has defined the new West Yilgarn Ni-Cu-PGE Province, an almost entirely unexplored mineral province which is interpreted to extend for ~1,200km along the western margin of the Yilgarn Craton. Chalice holds an unrivalled >8,000km2 land position in this exciting new area and is leveraging its competitive ‘first mover’ advantage."



Chalice Mining (CHN):

[hedgehog 100] 05/3/2022 17:26

TWO NICKLE SULPHIDE PROJECTS -

1. ZEB NICKEL PROJECT, SOUTH AFRICA

Uru Metals (URU) has a three quarters share of this project, via North American listed Zeb Nickel:

"ZEB NICKEL PROJECT

Due to the location, geometry and size of the orebody, the Zeb Nickel Project is an attractive source for environmentally friendly, cost efficient sustainable nickel sulfide.

The Zeb Nickel Project is a developing Class 1 nickel sulfide project strategically located in the Bushveld Complex in South Africa. The Zeb Project Contains a NI43-101 compliant resource over 3.9 million tons of contained sulfide nickel, ranking it number 8 in the global top ten nickel sulfide resources (Mudd, G. M., & Jowitt, S. M. (2014). A detailed assessment of global nickel resource and trends and endowments. Economic Geology, 109(7), 1813-1841.).

Highlights

• Class 1 nickel sulfide project.
• Situated in world class region of world-renowned platinum group metals and nickel producers.
• An NI 43-101 compliant resource containing over 3.9 million tons of contained sulfide nickel .
• Ranked 8th in the global top ten nickel sulfide resources.
• The project is at an advanced licensing stage with a Mining Right Application and Environmental Authorization in process.
• Active Prospecting Rights."



2. AKELIKONGO PROJECT, UGANDA

22/02/2022 07:00 UKREG Blencowe Resources PLC Acquisition of Nickel Sulphide Project in Uganda

" ... Although both oxide and sulphide ores can be converted into class 1 nickel for use in batteries, processing of sulphide ores, as found at Akelikongo, is technologically much easier and cheaper. Nickel laterites (oxides) are the more dominant ore type in most recent major nickel discoveries and sulphides are much rarer. Processing nickel laterite ore into battery grade nickel sulphate can be achieved using a high-pressure acid leach process ("HPAC") but the economic feasibility of this remains questionable, as aside from high operating costs it comes with environmental concerns. This makes nickel sulphide deposits increasingly more valuable ahead. ..."

[hedgehog 100] 05/3/2022 14:40

"Is it time for lower grade nickel sulphide projects to shine?

By: Matt Fernley
Posted on - 20 Dec 2021

This article first appeared in the November 2021 edition of Battery Materials Review.

The bidding war over Noront Resources and the flurry of nickel offtake agreements announced between automakers and nickel producers seems to suggest that EV and battery industry participants have (at last) woken up to the impending scarcity of class 1 nickel resources. As we discussed in November’s other BMR Focus article, we believe that ternary (high nickel) chemistries will remain vital in EV land for at least the next decade, probably longer, which means that the demand story for nickel will remain intact. With the bidding war for Noront continuing, we ask – what next for nickel?

We believe that it’s time for lower grade nickel sulphide projects, historically shunned by the market, to start to shine. ...

Economics of lower grade sulphide projects

Given that production focus in the world of nickel has always been on higher grade projects (Norilsk, Western Australia), many investors turn their noses up in the air at the thought of investing in a low grade, high tonnage deposit. But actually this view is rather blinkered, and to explain that let’s use the example of copper. ...

Small high grade or large low grade?

Well, it kind of depends what your preference is. Australian investors often get sniffy about lower grade deposits abroad, but the fact is that from a mining point of view it’s simpler and cheaper to mine a large tonnage open pit than it is a high grade, underground occurrence, particularly as those high grade mines get older and the operating areas move further away from the shaft or decline. ...

Environmental considerations to come to the fore

We’ve already seen a number of Majors flirt unsuccessfully with low grade, bulk tonnage laterite nickel projects. ...

So, for battery raw materials, I would suggest that investors look much more closely at lower grade nickel sulphide projects ..."

[mcbeanburger] 05/3/2022 12:31

copper made an all time high this week. so I expect nickel to do the same at some point. russia is a hugh producer.

edit - looking at the charts above, looks like has already.

[shavian] 05/3/2022 07:33

The brightest spot in my portfolio in this dreadful week is NICK

[hedgehog 100] 26/5/2021 17:10

"Goro mine
From Wikipedia, the free encyclopedia

The Goro mine is a large nickel mine in the south of New Caledonia, near the township of Yaté, Prony Bay, in the South Province. It is owned by the Brazilian company Vale, who are in the process of selling it to Melbourne-based New Century Mining in June 2020 following years of technical problems and low production.[1] The large mine and plant was opened at Goro in 2010 although it has had frequent stoppages.

Details
Goro is one of the largest nickel reserves in New Caledonia, which produces 25% of world nickel reserves. Goro has estimated reserves of 370 million tonnes of ore grading 1.6% nickel.[2] The 370 million tonnes of ore contains 5.92 million tonnes of nickel metal.[2]

The Goro mine is targeted to produce about 40,000 tonnes of nickel per year, and also some cobalt from saprolite deposits. It was designed by the Canadian company Inco, and completed by the Brazilian company Vale after it purchased Inco.[3] Ore comes from a huge open cut mine on the Plaine des Lacs. Nickel and cobalt are delivered by conveyor to Prony Bay. The processed high grade Nickel Oxide is then shipped to Vale's refinery in Dalian, China. Vale have a 69% share and a joint company called Sumic Nickel Netherlands, Japan's Sumitomo Metal Mining Co. Ltd., and Mitsui Co. Ltd., hold a 21% share. The three provinces of New Caledonia hold the remaining 10%. [a sale of the operation is in process, 2020, changing these percentages if it goes through] ..."




Tesla's new partner, the Goro nickel mine, is one of the largest nickel mines in the world:
• 370 million tonnes of ore grading 1.6% nickel.
• Contains 5.92 million tonnes of nickel metal.
• Targeted to produce about 40,000 tonnes of nickel per year.

Compare to CRCL's (Corcel's) nickel projects:
• Mambare: JORC Resource of 162.5 million tonnes @ 0.94% Ni and 0.09% Co (1.53 million tonnes of nickel)

• Wo Wo Gap: Resource of 125 million tonnes @ 01.06% Ni and 00.07% Co (1.33 million tonnes nickel + 83k tonnes of cobalt)


Mambare could actually contain 10 million tonnes of nickel, and grow the resource to 250 million tonnes of ore and beyond.
The future mine life is already 30 years at 40,000 tonnes per annum of nickel output, and this can grow up to 30 years at 80,000 tonnes per annum of nickel output.


Mambare and Wo Wo Gap are under a hundred miles apart, and there are obvious synergies here.


And significantly, both the Goro nickel mine and Corcel's nickel projects are located in islands of Australasia.
Both New Caledonia and New Guinea are islands relatively near Eastern Australia.

"... New Caledonia (/ˌkælɪ12;doʊniə/; French: Nouvelle-Calédonie)[nb 1] is a special collectivity of France in the southwest Pacific Ocean, south of Vanuatu, about 1,210 km (750 mi) east of Australia[4] ..."


" ... New Guinea (Tok Pisin: Niugini; Hiri Motu: Niu Gini; Indonesian: Papua[1], historically Irian) is the world's second-largest island, and with an area of 785,753 km2 (303,381 sq mi), the largest island in the Southern Hemisphere. Located in Melanesia in the southwestern Pacific Ocean, it is separated by the 150 km (81 nmi; 93 mi) wide Torres Strait from the Australian continent. ... "


Significantly, both the Goro nickel mine and Corcel's nickel projects are located in islands of Australasia.
Both New Caledonia and New Guinea are islands relatively near Eastern Australia.

[shavian] 28/4/2021 09:04

NICK gaining a bit of momentum in recent days, possibly echoing the recent strength of copper. I'm into copper via COPA and LCOP

[shavian] 15/3/2021 11:43

Correction: Nova Royalty Corp has ticker NOVR. Sorry.

[shavian] 15/3/2021 11:41

Another ploy could be a new royalty company, Nova Royalty in Canada, which concentrates entirely on critical metals, especially Cu and Ni. Ticker NVR on TSXV

[shavian] 15/3/2021 11:38

Take a look at CleanTeq on the ASK, back by Robert Friedland no less

[mcbeanburger] 15/3/2021 11:16

from memory the issue with nickel is finding vehicles to profit from it.

last time around i was into micro explorers...

[shavian] 15/3/2021 09:27

Thanks McB. Looks like the spot price gives a more attractive entry price than the LME. I think the WisdowmTree ETN (NICK) is tuned to the spot price. I may add a bit to my position this week.

[mcbeanburger] 12/3/2021 18:20

thanks for the heads up sharian. recent price has dipped off what looks like all time highs. good time to have a look in.

[shavian] 12/3/2021 17:07

Time to dust off this old Nickel thread? Demand is only going to increase through the next decade, and the threatened increase in supply from China will be like peeing on a forest fire. Very little serious supply coming on stream outside China just yet, but I'm watching Mincor and CleanTeq in Oz, and have just taken advantage of the dip to take a small position in NICK. Anyone else looking in here, or am I talking to myself as usual?