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Smith River is too valuable to mine [Nickel] – by Jeff Thompson (SF Gate.com – June 9, 2014)

http://www.sfgate.com/

Jeff Thompson is executive director of California Trout, a nonprofit organization that has been working to protect and restore wild trout, steelhead, salmon and their waters throughout California since 1971.

The Smith River, stretching from Southern Oregon into the far reaches of Northern California, is the only major California river that remains undammed from its headwaters to its mouth. That’s no small thing. More than 7,000 dams and diversions clutter California’s rivers, making the Smith the last truly wild major river here.

A mining company based in the United Kingdom has set its sights on developing a nickel mine along one of the Smith’s major tributaries in Oregon. The proposed mining area is within a national forest; federal law allows mining on such lands. Just because mining can take place on this land, should we allow it happen?

Is it fair – or even logical – for a private corporation to reap a profit while placing California’s last wild river in harm’s way? Millions of dollars and countless hours have gone into protecting and restoring the Smith River watershed. Ninety percent of the land around the river and its tributaries are managed by public agencies. This tremendous investment of time and money has a singular goal: to protect one of the last salmon strongholds left in the lower 48 states, which provides essential support for a multimillion-dollar salmon fishery.

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Nickel Gain Enables BHP to Anglo to Sell Mines: Real M&A – by Maria Kolesnikova and Firat Kayakiran (Bloomberg News – June 4, 2014)

http://www.bloomberg.com/

The 37 percent surge in nickel this year means some of the world’s biggest metals companies may finally be able to sell as much as $14 billion in unwanted mines they’ve held for years.

Diversified mining companies such as BHP Billiton Ltd. (BHP) and Anglo American Plc (AAL) don’t see the metal as strategic because it generates less cash than other commodities and requires more investment. With nickel prices improving and companies looking to cut costs, OAO GMK Norilsk Nickel, the largest producer, last month agreed to sell two mines in Australia. BHP, valued at $174 billion, said May 14 that it’s holding talks to sell its Australian nickel unit, while London-based Anglo said it may consider shedding its mine in Brazil.

Private-equity firms and smaller companies such as $12 billion First Quantum Minerals Ltd. (FM) could be potential buyers, according to Sanford C. Bernstein & Co. Should nickel prices continue to rise, BHP’s assets could be valued at as much as $9 billion and Anglo’s at $5 billion, Macquarie Group Ltd. said.

“Deals chase a rising commodity,” Lee Downham, global mining transaction chief at Ernst & Young LLP in London, said by e-mail. When prices climb, those companies “with a strategy to divest look to capture positive market sentiment in order to generate a higher valuation.”

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Indonesian export ban not a hangup for Vale N.L. – by Ashley Fitzpatrick (St. John’s Telegram – May 30, 2014)

http://www.thetelegram.com/

Long Harbour first nickel expected by end of second quarter

A ban by Indonesia on the export of unprocessed ores containing nickel will not affect the startup of Vale’s new hydromet processing facility in Long Harbour.

As previously reported, the plan for the facility in Newfoundland and Labrador is to use nickel matte from Indonesia during startup, before transitioning to ore from the Voisey’s Bay mine in Labrador as a main feed. Workers inspect equipment at Vale’s hydromet nickle processing facility in Long Harbour. — Telegram file photo

The Indonesian nickel matte, at about 78 per cent nickel, is considered less likely to cause difficulties for the Long Harbour commissioning in comparison to the material from Voisey’s Bay, at about 20 per cent nickel, as individual parts of the multibillion-dollar plant are checked and made ready for regular use.

According to Vale’s vice-president of corporate affairs in Toronto, Cory McPhee, the mining giant has been conscious of the potential for the ban on raw exports from Indonesia for years, as the company has multiple processing facilities in that country.

“The Indonesian restrictions on exports of unprocessed ore were first signaled by the Indonesian government years ago with the 2009 Mining Law which included stipulations calling for value-added domestic processing,” McPhee said in an emailed response to questions Thursday.

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Vale sounds new cautionary note on possibility smelter and refinery will remain open beyond 2015 – by John Barker (Thompson Citizen – May 29, 2014)

The Thompson Citizen, which was established in June 1960, covers the City of Thompson and Nickel Belt Region of Northern Manitoba. The city has a population of about 13,500 residents while the regional population is more than 40,000.  editor@thompsoncitizen.net

Pending federal sulphur dioxide (SO2) emission standards issues remain, as do questions over availability of nickel sulphide concentrate feed

“On the business side of things, the often talked about last year $100-million challenge, was, we have to say, a roaring success,” Mark Scott, general manager of mining and milling for Vale’s Manitoba Operations, told about 30 members and guests at the Thompson Chamber of Commerce’s weekly luncheon May 28, as he delivered a presentation entitled, “Standing on our own Two Feet.”

At the same time, however, Scott sounded a new cautionary note on the possibility of the smelter and refinery remaining open beyond next year, saying the “base case remains” that they both “will close at some point in 2015.”

Pending federal sulphur dioxide (SO2) emission standards issues remain, as do questions over availability of nickel sulphide concentrate feed, he said. The announcement that the smelter and refinery would close was originally made on Nov. 17, 2010, with Vale saying at the time it was “phasing out of smelting and refining by 2015” in Thompson.

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Scotiabank positive on nickel – coal and uranium at rock bottom – by Dorothy Kosich (Mineweb.com – May 29, 2014)

http://www.mineweb.com/

As world nickel supplies plunge 20% this year, Pat Mohr forecasts an average nickel price of US$8.30 this year, US$10.75 in 2015, and US$12.50 in 2016.

RENO (MINEWEB) – “Indonesia’s ban on the export of all unprocessed nickel-containing ores will turns today’s world supply & demand balance from ‘surplus’ to ‘deficit’ by early 2015,” says Scotiabank economist Patricia Mohr.

In the latest edition of the Scotiabank Commodity Price Index published Wednesday, Mohr observed that Chinese stainless steel producers’ inventories of Indonesian ore “will largely be depleted by year-end.” As a result, Chinese mills urgently boosted imports of FeNi (nickel & iron) by 70% during the first quarter of this year.

“The strength in Chinese nickel orders is coming at a time of improving stainless steel demand in the United States and signs of firmer stainless orders in Europe,” Mohr said. “This reflects more favorable market conditions in the U.S. auto, heavy truck & transportation sectors and in the energy and chemical processing industries.”

LME nickel prices—important to the Sudbury Basin, Thompson Manitoba, Raglan in northern Quebec and Voisey’s Bay in Newfoundland and Labrador—have surged from a weak US$6.31 per pound early this year to as high as US$9.62 in mid-May, up 52%.

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Nationalist drum-beating a threat to Indonesia’s prospects – by Andy Mukherjee (Globe and Mail – May 27, 2014)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

SINGAPORE — Reuters – Indonesian politicians are playing with the fire of economic nationalism. If actual policies mimic their pre-election rhetoric, the country’s long-term growth potential will suffer.

Both presidential hopefuls are chanting the mantra of self-sufficiency. Joko “Jokowi” Widodo, the Jakarta governor and front-runner in the July 9 poll, is calling for a “mental revolution” to reduce the country’s dependence on foreign investment and technology.

He also wants to restrict the sale of national banks to foreign investors, according to local media reports. His rival, ex-army general Prabowo Subianto, wants more of Indonesia’s mineral riches exploited domestically.

The mining issue has already proved problematic. In January, Indonesia banned exports of unprocessed nickel and bauxite, and imposed steep taxes on overseas shipments of raw copper, zinc and iron ore.

The government wants to nudge mining companies – particularly large multinationals – to put up local smelters and refineries; but the miners don’t seem to be interested. Users may switch to other suppliers if Indonesia prices itself out of the market.

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Stainless-Steel Sales Jump as Nickel Costs Spur Stockpile – Maria Kolesnikova (Bloomberg News – May 27, 2014)

http://www.bloomberg.com/

Mining companies aren’t the only ones benefiting from this year’s nickel rally. Stainless-steel makers in Europe, who use the metal, are seeing a surge in sales as customers stock up to avoid higher raw-material surcharges.

Finland’s Outokumpu OYJ (OUT1V) reported a 9.1 percent jump in stainless-steel deliveries from the fourth quarter, orders at Madrid-based Acerinox SA are “the highest in at least three years,” and Germany’s ThyssenKrupp AG, says customers are adding to inventories. The sales jolt is reviving prospects for in an industry mired in losses since the financial crisis.

While nickel accounts for half the cost of stainless steel, mills impose surcharges to cover any increase in the expense. Nickel surged 41 percent this year after Indonesia, the largest supplier to China, banned ore exports to spur investment in domestic smelters. The supply halt is boosting profit for mining companies including Glencore Plc and may help create what Credit Suisse Group AG called a “supercycle” in prices.

“The biggest winners are nickel producers, and the second-biggest are the producers of stainless steel,” said Markus Moll, the founder of Reutte, Austria-based Steel & Metals Market Research GmbH who has studied the industry for three decades. “Usually such a surge in nickel prices triggers a strong speculative buying wave. The biggest loser is the end user, who has to pay higher price for stainless.”

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Glencore seeks exception to air standards – Laura Stricker (Sudbury Star – May 21, 2014)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

Mining giant Glencore is requesting an exception for the Sudbury smelter’s nickel emissions.

Ontario’s Ministry of the Environment is introducing new air quality standards come July 2016. Sudbury Integrated Nickel Operations, a Glencore company, is applying for a Site-Specific Air Standard. Basically, it’s a temporary standard that – with approval from the ministry – gives the company more time to meet the new standards, and includes an action plan explaining how the company will get up to speed with those regulations.

“The new standard will be based on an annual averaging period, as opposed to the current standard that is based on a 24-hour averaging period,” Kate Jordan, a Ministry of the Environment spokesperson, said in an email. “For this reason it’s difficult to compare the two standards, but the current is 2 ug/m3 (micrograms per cubic metre of air) and the new is 0.04 ug/m3.”

A notice was sent to neighbours, informing of the application and a public meeting being held next month. Notices will also be printed in local newspapers. “The company is applying for a site-specific standard to allow us to research and implement the best technologies and processes in order to be in compliance with the new standard in the future,” it says.

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INTERVIEW: Balmoral CEO on high-grade nickel hit – by Kip Keen (Mineweb.com – May 21, 2014)

http://www.mineweb.com/

Balmoral Resources CEO Darin Wagner describes plans to explore a newly discovered semi-massive sulphide zone on its Grasset project in Quebec.

HALIFAX, NS (MINEWEB) – Much remains to be seen about the potential of Balmoral Resources’ Grasset nickel-copper-PGE project in Quebec on the Detour gold trend. But its latest intercept certainly catches the eye with 45 metres @ 1.79 percent nickel, plus some copper and platinum group elements, in a new zone of mineralization that is little tested.

The question now becomes if there’s more of that to be had in the new zone. To get a sense of the project and its prospects we spoke with Darin Wagner, Balmoral Resources President and CEO, a few hours after it released the latest Grasset assays.

KIP KEEN: Tell me about the intercept and its implications.

DARIN WAGNER: In the intercept this morning basically there’s 77 metres of mineralization there. But the core of it is 45 metres at 1.79% nickel long with copper and PGE credits. That is contained in a specific horizon, which we’re referring to as Horizon 3, and it’s actually net-textured. So semi-massive sulphides that are well disseminated through the core and have a beautiful internal consistency to it.

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Jakarta jubilant as nickel soars, China plans smelters – by Melanie Burton and Fergus Jensen (Reuters India – May 19, 2014)

http://in.reuters.com/

SYDNEY/JAKARTA – May 19 (Reuters) – When Indonesia vowed to halt exports of mineral ore to wring more profit from its rich resources, many predicted the policy would be an economic own-goal.

But in the case of nickel, at least, Indonesia is proving its doubters wrong as the price of the metal soars and Chinese producers starved of raw material begin to ship equipment for processing plants to the Southeast Asian nation.

Just four months after a ban on ore exports, one smelter is under construction and equipment for two others has been shipped from China to Indonesia, including a dismantled blast furnace, industry sources told Reuters.

At least two other firms plan to start construction of processing plants by year-end or shortly after, amid fears that China’s nickel-pig iron industry is running out of raw material.

“It’s been a success,” Energy and Mineral Resources Minister Jero Wacik told Reuters. One Chinese firm that told Reuters it expected to start production by year-end at the earliest said the smelter would produce nickel pig iron with 4 percent metal content, which then would be shipped back to China for production of higher value grades with 10-15 percent metal.

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Nickel’s Roller-Coaster Tumble Seen Extending to Goldman (2) – by Maria Kolesnikova and Luzi Ann Javier (Bloomberg News – May 15, 2014)

http://www.bloomberg.com/news/

Nickel’s roller-coaster ride this year isn’t over, according to Goldman Sachs Group Inc., which expects the highest prices in two years to prompt expanded capacity for smelting and discourage purchases by steelmakers.

Prices plunged 11 percent the previous two days, and probably will fall 15 percent further in 12 months to $16,000 a metric ton, Goldman forecasts. Nickel had surged this year following a January ban on ore exports by Indonesia, the world’s largest supplier from mines, and as threats increased for economic sanctions against Russia, home to OAO GMK Norilsk Nickel, the biggest producer of refined metal.

Instead, exchange-tracked inventories rose, prompting some investors to judge the rally was exaggerated. China will “aggressively” build blast-furnace capacity in Indonesia to produce nickel pig iron, a low-grade alternative to refined metal, Goldman said in a report dated May 14 and e-mailed yesterday. Waning demand for the metal from makers of stainless steel is another “downside risk” for prices, the bank said.

“High prices will incentivize a substantial build out of blast furnace and other smelting capacity in Indonesia,” Goldman analysts Roger Yuan, Max Layton and Jeffrey Currie wrote in the report. “Demand destruction could also help to balance the global market in 2015 if the ban is not relaxed during the smelter construction period.”

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Nickel, aluminium show signs of revival – by Peter Ker (Sydney Morning Herald – May 16, 2014)

http://www.smh.com.au/

They’ve been the dregs at the bottom of the diversified miners’ bottle for years, but nickel and aluminium are starting to show signs of life.

The two commodities have been bywords for poor performance over recent years, having dealt financial losses and multi-billion dollar impairments on their hapless owners at the big end of the mining industry.

But evolving attitudes in the developing world seem to be changing the rules of engagement in both industries, and tempting investors to think again. The nickel resurgence is more advanced and better understood.

Prices for the metal – used to create stainless steel – soared 56 per cent after January 10 when the Indonesian government placed a ban on certain raw metal exports.

The decision was designed to create jobs by forcing exporters to build processing plants on Indonesian soil, rather than exporting their raw ores overseas. As the world’s biggest nickel exporter, Indonesia’s removal from global trade has led to expectations of a shortage and price rises.

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Nickel price to reach huge highs, says mining exec – by Staff (Northern Ontario Business – May 16, 2014)

Established in 1980, Northern Ontario Business  provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North. 

The price of nickel could reach highs previously seen in 2007, said Mark Selby, president and CEO of Royal Nickel, at a Canadian Institute of Mining event in Sudbury, May 15. Selby expects nickel prices to $15 to $20 per pound by mid-2015.

The reason is Indonesia’s decision to cease nickel exports indefinitely. The Asian country contains 25 per cent of the world’s nickel supply.

“To give you an idea of just how much that is, in the oil business that would be the equivalent of waking up Monday morning and finding out that Saudi Arabia, Iran, Iraq, Kuwait and all of the other Gulf states decided not to produce oil anymore,” Selby said.

The country has stopped exporting the metal to build the ore processing infrastructure needed to create more value from its nickel. In 2009, when the Indonesian Parliament first discussed ceasing copper and nickel exports, nickel left the country with only 10 to 15 per cent of its end value.

“There’s a massive amount of value to be captured by building these plants in the country,” Selby said. In January 2014, just before Indonesia halted nickel exports, the metal sold for around $6 a pound. In mid-May, nickel prices were as high as $9.50 a pound.

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The Astonishing Nickel Eating Plant That Could Radically Change Mining – by Tim Worstall (Forbes Magazine – May 13, 2014)

http://www.forbes.com/

There’s been a discovery of a new species of “metal-munching” plant that has the possibility of radically changing how we go about mining for metals. Or at least, how we go about mining for certain metals. We’ve long known that certain plants concentrate certain metals in their tissues: for example, that coal has elevated levels of germanium in it is simply the result of the fact that those plant tissues the coal was made from contained Ge. But this latest finding concentrates metals, in this case nickel, to such an extent that it could radically change the way that we go mining for certain metals.

A report is here and this is the most amazing line:

“Professor Fernando said that the Rinorea niccolifera’s leaves can take in up to 18,000 parts per million of nickel. This is a thousand times more than what any other known plant species can safely absorb.”

It’s that thousand times which is the astonishing part. And it’s so astonishing that it completely changes the economics of the matter.

18,000 ppm is also known as 1.8%. So, for one tonne of the leaves of this plant we would have 18 kilogrammes of nickel contained. Well, OK, we would if it had been growing on highly nickel contaminated soil.

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Rising nickel prices good for Sudbury – by Ben Leeson (Sudbury Star – May 14, 2014)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

World events including an export ban on nickel ore in Indonesia and uncertainty over the political situation in eastern Europe have helped drive up nickel prices, analysts say. Nickel high a two-year high this week, peaking at more than $9.50 per pound on Tuesday.

That’s more than $2 higher than two months ago and about $3.50 higher than six months ago. Terry Ortslan, nickel analyst at TSO and Associates, based in Montreal, said the primary cause of the increase has been changes to mining laws in Indonesia, which previously supplied China with much of its nickel ore to be processed into pig iron, for use in stainless steel.

“China produces more nickel than Canada and (the former Soviet Union) combined,” Ortslan said. The Chinese have relied on deposits in Indonesia, as well as New Caledonia and the Philippines, before the Indonesians announced a ban on nickel ore exports, in an effort to extract more value from its mineral resources, in 2009.

That ban went into effect in mid-January and though there are presidential elections in Indonesia this summer, it’s not expected the next government will change course.

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