Nickel – Page 108 – Republic of Mining

Nickel market may be missing the bigger picture – by Roskill Information Services (Mining.com – December 16, 2013)

December 16, 2013

http://www.mining.com/

With 2014 quickly approaching, all eyes in the market appear to be turned east to Indonesia.

As of the beginning of December, the Indonesian government has signalled that it would proceed with putting into effect a ban on unprocessed mineral ores.

Roskill’s nickel analyst, Thomas Hohne, answers some of the major questions related to the ban and its effect on the nickel market, and shares some of Roskill’s views of what other factors will be driving the nickel market in the years to come. What should we expect to happen come January 2014?

Shipments are set to be barred from January 12th onwards as proposals for a phased introduction of the ban have been discussed, but not adopted, as of yet. With Indonesia’s earnings from ore exports in the range of US$10 billion in 2013, much of which would evaporate overnight, pressure for some intermediate solution will remain. Because of this, however, any temporary solution is likely to be reached after the imposition of the ban, rather than before. Moreover, Indonesian officials have already indicated that even as the legislation will go ahead, implementation of the ban may allow for some amendments in practice.

Mineral exploitation in Odisha [India] low despite increased mining activity – by Sadananda Mohapatra (Business Standard – December 16, 2013)

December 16, 2013

http://www.business-standard.com/ [India]

The state has about 174 million tonne of nickel, which is yet to explored

Despite increased mining activity in Odisha, the mineral exploitation in the state remains low in last hundred years compared to its reserves.

Major minerals with sizeable reserves in the state include chromite, iron ore, bauxite and manganese. While only 13% of the total chromite deposits has been excavated so far, the same for iron ore and manganese are 9% each and for bauxite only three%.

Odisha currently possesses 159.40 million tonne of chrome ore that finds its usage in making stainless steel, out of 182.86 million tonne of preliminary proven reserve, according to the government statistics. About 23.50 million tonne of the mineral or 12.8% of the proven reserve has been excavated so far.

Nearly all of India’s chrome ore is found in Odisha with state-run Odisha Mining Corporation (OMC) having control over one-third of production. Few players such as Tata Steel, Indian Metal and Ferro alloys (IMFA), Ferro Alloys Corporation Limited (FACOR) and Balasore Alloys (formerly Ispat Alloys) have also their captive mines in the state.

NEWS RELEASE: Wallbridge Announces Milling Arrangement for Broken Hammer

December 13, 2013

Toronto, Ontario — December 12, 2013 – Wallbridge Mining Company Limited (TSX: WM, FWB: WC7) (“Wallbridge”) today announced that it has signed a binding term sheet, (the “Term Sheet”) with Northern Sun Mining Corp. (formerly Liberty Mines Inc.) (TSX: NSC) (“Northern Sun”) for the custom milling of its Broken Hammer ore at Northern Sun’s Redstone concentrator in Timmins, Ontario. The Term Sheet is subject to, among other things, a Definitive Agreement to be entered into on or before February 7, 2014.

“We are excited to have completed another important step towards the development of the Broken Hammer deposit. Most permits are in place and negotiations with copper smelters and mining contractors are going well. Once these other facets of the project are in place, which is expected to be in early 2014, a production decision will be made to start construction in March 2014 with the expectation of ore delivery in May 2014, immediately after the half-load restrictions in Northern Ontario are lifted,” Marz Kord, President and CEO of Wallbridge stated, “At today’s metal prices we expect the project to proceed in late Q1 2014 and start generating cashflow in Q2-2014, that Wallbridge can put towards exploration opportunities at Broken Hammer and elsewhere in Sudbury”.

The securing of a satisfactory milling and processing contract for the Broken Hammer ore was a critical path item in determining the schedule for the project. Discussions with local milling facilities in Sudbury did not result in a contract being finalized and as a result Wallbridge explored other processing options, including, but not limited to, the possibility of processing the ore at Northern Sun’s Redstone Mill in Timmins, Ontario.

Barclays favours nickel in 2014, bearish on gold and oil – by Barani Krishnan (Reuters U.K. – December 10, 2013)

December 10, 2013

http://uk.reuters.com/

NEW YORK – (Reuters) – Base metals, led by nickel, appear set to trend higher in 2014 due to tighter supplies, while unfavorable economics should keep pressure on gold and oil and prompt investors to avoid much of the commodity complex, Barclays said on Monday.

In another negative outlook on commodities from a major investment bank, London-based Barclays PLC (BARC.L) said that outflow of money from the sector will not end soon, at least not in the first quarter.

It cited a litany of reasons, including comfortable supply levels in most raw materials; a still-sluggish global economy and the likely scaling back of the Federal Reserve’s stimulus that had supported commodities.

“It is unlikely investors will warm to commodities in the near term,” said Barclays, which until a few years ago was one of the biggest proponents of the sector. Goldman Sachs (GS.N), often regarded Wall Street’s most authoritative voice on commodities, and Citigroup (C.N) have issued similarly sanguine outlooks in recent weeks.

State releases long-awaited impact statement for PolyMet mine, opens public comment period – by Josephine Marcotty (Minneapolis Star Tribune – December 7, 2013)

December 10, 2013

http://www.startribune.com/

State regulators unveiled their forecast Friday of the way Minnesota’s first copper mine would affect the air, water and lives of people in northeastern Minnesota, a document that is expected to escalate an already polarizing debate about what could be a new era of mining in the most beautiful and untouched part of the state.

The release of the environmental impact statement, a dense, 2,200-page document that took five years and cost $22 million, sets the stage for a 90-day public comment period starting Dec. 14 and, potentially, for a much larger debate over Minnesota’s future.

PolyMet Mining Corp., which promises a $650 million investment and 300 to 360 jobs over 20 years, is only the first of many companies lining up to tap one of the world’s largest untouched deposits of copper, nickel and other precious metals lying beneath the forests and lakes of northeast Minnesota. Many on both sides of the issue say the debate in the coming months, which is expected to generate tens of thousands of public comments, will influence how and whether copper mining in the state becomes a reality.

The 2014 Metals Outlook: Nickel – by Cole Latimer (Australian Mining – December 9, 2013)

December 9, 2013

http://www.miningaustralia.com.au/home

Australian Mining has investigated the current state of Australian metals and looks into how they will perform in the coming year. In the third part of this five part series we look at nickel.

The nickel industry has always been one of sharp busts and booms, with the busts now lasting longer and longer. To sum up the sector in a single word – volatile.

After an astounding leap in revenues in 2006-07, where it skyrocketed 132.9 per cent after shrinking 5.7 per cent the previous year, nickel has undergone a series of sharp price corrections, seeing an annualised fall of 12.1 per cent in revenues from 2008 through to this year.

This was due to prices retreating from unsustainably high levels. However after two years of serious gloom for the sector, following another brief spike in 2010-11, nickel is predicted to grow again, according to IBISWorld reports.

Miners eye Jakarta’s planned iron ore ban – by Barry Filzgerald (The Australian – December 10, 2013)

December 9, 2013

http://www.theaustralian.com.au/business

NO one is getting too excited just yet, but there is a chance that Indonesia of all places may be about to do Australia a big favour — more particularly, our tin, nickel and bauxite producers.

Like the rest of the mining sector, all three could do with a bit of early Christmas cheer. Apart from the broader fallout from the recent spying scandal and the ongoing tragedy of boatpeople, Indonesia has not exactly endeared itself to the local resources industry, with its regular shocks and horrors when it comes to security of tenure.

But if the Indonesians deliver on their big commodities threat of early 2014, much of that will be quickly forgiven. The big threat is to follow through on the government’s plans to proceed with a mineral ore export ban from January 12 — a drastic attempt to force through value-adding processing of minerals with all the attendant jobs and investment creation.

Until the recent backing of parliament, few if any observers thought the ban would see the light of day. But the fact the parliament followed through — presumably after intense lobbying by those interests opposed to the move — means mineral export market watchers are beginning to factor in the potential for the Indonesians to do what they say they are going to do.

Change to Vale’s buying scheme makes city more attractive – by Jonathan Migneault (Sudbury Northern Life – December 06, 2013)

December 9, 2013

http://www.northernlife.ca/

Changes to Vale’s procurement system will result in new jobs and opportunities in Sudbury, said the executive director of the Sudbury Area Mining Supply and Service Association (SAMSSA).

Dick DeStefano, SAMSSA’s executive director, said Vale’s new regional focus on supply and service procurement will improve Sudbury’s reputation as a world-leader for the mining supply and service sector.

“This will attract a number of satellite offices,” DeStefano said, as companies will set up shop in Sudbury to be closer to the buying action. Mining supply and service companies previously had to deal with Vale’s offices in Toronto and Brazil to set up contracts with the mining giant.

But in 2012, Vale started to change its organizational structure, and shifted its gaze to regional markets. “It was about getting more autonomy in the different regions,” Kelly Strong, Vale’s vice-president of Ontario operations, said regarding the shift in focus.

In early 2014 companies in Sudbury will be able deal with Vale employees who handle procurement directly in Sudbury.

China nickel importers strike term deals with eye on Indonesia ore ban – by Polly Yam (Reuters U.S. – December 5, 2013)

December 5, 2013

http://www.reuters.com/

HONG KONG, Dec 5 (Reuters) – China’s refined nickel importers are negotiating 2014 term deals with suppliers that give them the flexibility of adjusting shipment volumes depending on how Indonesia’s proposed ban on ore exports turns out.

The Southeast Asian nation has said it will ban unprocessed ore exports from January 2014, but is rethinking it in order to keep export revenues flowing in. On Thursday lawmakers rejected a government bid to water down the planned ban.

A ban on ore exports from next month will boost China’s demand for refined metal by hurting output of cheaper substitute nickel-pig-iron. Higher imports of spot refined nickel by the world’s biggest user of the metal could support global prices that have fallen nearly 20 percent this year.

Some 60 percent of nickel consumption in China is covered by nickel-pig-iron, a low-grade ferro-nickel used for stainless steel production. So widespread is its use now that China has become the world’s biggest and dominant producer of nickel-pig-iron.

FAQ: Everything you need to know about PolyMet – by Elizabeth Dunbar and Dan Kraker (Minnesota Public Radio – December 2, 2013)

December 2, 2013

http://minnesota.publicradio.org/features/

What is PolyMet proposing?

PolyMet wants to mine copper, nickel and precious metals for 20 years at a site located just north of Hoyt Lakes in the Superior National Forest. The NorthMet Deposit is part of what is known as the Duluth Complex, which stretches from about 150 miles north of Duluth all the way to the Canadian border. PolyMet would build three open pits and blast and drill to get to the ore containing minerals. Ore would be put in rail cars and shipped seven miles west to an old iron ore processing plant — LTV Steel — which closed in 2001. PolyMet is repurposing the facility to process up to 32,000 tons of copper and nickel per day.

How significant are the deposits?

The Duluth Complex is considered one of the biggest copper-nickel deposits in the world. PolyMet’s mine would tap into just a small part of that, with the possibility of expanding later. PolyMet’s goal is to produce 72 million pounds of copper, 15 million pounds of nickel and 106,000 ounces of precious metals annually.

How does this proposal compare to other copper-nickel mines in the U.S.?

Mine to inject $4 billion locally [Michigan Upper Peninsula] – by John Pepin (The Mining Journal – December 1, 2013)

December 2, 2013

http://www.miningjournal.net/

HUMBOLDT – A recent in-house economic report projects the Eagle Mine and Humboldt Mill will directly and indirectly inject a total of $4 billion into the Marquette County economy over a 15-year period.

From 2011 through 2025, the Eagle Mine project -which includes the underground nickel and copper mine in Michigamme Township and the Humboldt Mill processing center in Humboldt Township- is expected to have a total positive economic impact of $4.3 billion on Michigan.

In addition to the $4 billion projected to impact Marquette County, $10 million will benefit Baraga County, $179 million for the rest of the Upper Peninsula and $169 million for the Lower Peninsula. “Marquette County’s economy is expected to be nearly 20 percent greater by 2016 when Eagle Mine’s economic contribution peaks than it otherwise would have been without Eagle Mine,” the report stated.

In addition to the economic forecasting, the “Eagle Mine: Economic Impact Assessment” report -which was produced by former project owner Rio Tinto and released Oct. 17 by new owner, the Toronto-based Lundin Mining Corp.- also provides information on employment, purchase of goods and services, government revenue and risks.

New [Sudbury KGHM] mine to create 150-300 jobs – by Darren MacDonald (Sudbury Northern Life – November 28, 2013)

November 29, 2013

http://www.northernlife.ca/

If all goes according to plan, in five years, Greater Sudbury should have a new mine employing 150-300 people. City council approved a plan this week to cost-share $5 million in roads improvements with KGHM International, the company that’s building the mine in Worthington.

In exchange for paying 75 per cent of the cost of improving the four-kilometre road, KGHMI wanted the city to remove road restrictions on Fairbanks and Crean roads so they can haul construction materials in, and, in about five years, ore from the Victoria mine out to be processed.

Mark Frayne, KGHM’s manager of technical services, told councillors Tuesday the company aims to begin full construction in June, a process that would employ about 350 people.

“Once we go into initial stages of production, it will … be about 150 people,” Frayne said. “And if we go into full expansion, if everything is what we think it is, it will go to around 300 people.”

Vale celebrates Totten Mine startup – by Norm Tollinsky (Sudbury Mining Solutions Journal – December 1, 2013)

November 27, 2013

Norm Tollinsky is editor of Sudbury Mining Solutions Journal, a magazine that showcases the mining expertise of North Bay, Timmins and Sudbury. This column is from the December, 2013 issue.

Mine of the future brimming with state-of-the-art technology

It’s not every day that a new mine goes into production – not even in Sudbury, one of the world’s most important centres of mineral wealth – but, this month, Vale celebrates the official handover to operations at Totten Mine, 40 kilometres west of downtown Sudbury.

Hailed as “a mine of the future” by Kelly Strong, vice-president of Ontario and UK operations, Totten is brimming with advanced technologies.

“We’re very excited about this being our first new mine in over 40 years,” said Strong. “Totten demonstrates that we have this amazing resource under our feet here. Building Totten through some challenging economic times shows our commitment as a company to Sudbury. “One of the things you see in the mining industry is that the price cycle is shorter than the period of time it takes to complete a project,” noted Strong.

Thompson’s future looks up as Vale studies mine potential – CBC News Manitoba (November 25, 2013)

November 25, 2013

http://www.cbc.ca/manitoba/

The northern Manitoba city of Thompson could be home to a new mining mega-development from Vale, which is exploring minerals deep underground.

News of a potential big development is being cautiously welcomed in Thompson, which was devastated by news in 2010 that Vale — the city’s largest employer — would shut down its nickel smelter and refinery there by 2015.

Vale is currently testing ore samples in a project area it calls 1-D, about 3,800 to 4,200 feet underground in the company’s T-3 mine shaft. Preliminary testing in 1-D shows a deposit rich in nickel and copper deposits and also containing some cobalt and precious metals.

Vale says it has been mining in 1-D for years, but officials believe now is the time to dig deeper in an largely untapped section of the deposit extending as much as 6,800 feet underground in some places.

According to the company, geologists have been pulling up core samples containing extremely high-grade nickel. Based on their tests, the geologists believe there are at least 10 million tonnes of nickel present.

Eramet chief warns of crisis in world nickel market – by Agence France-Presse (Global Post – November 22, 2013)

November 22, 2013

http://www.globalpost.com/

The chief executive of French mining group Eramet has blamed oversupply in the world nickel market for steep losses at a subsidiary as China ramps up its own production, with little end in sight.

Patrick Buffet said the global overcapacity was causing Societe Le Nickel (SLN), the group’s nickel subsidiary in New Caledonia, to rack up monthly losses of 2.5 billion French Pacific francs ($27 million).

“The crisis in the nickel (market) is very, very intense and nobody expected it to reach such a level,” Buffet told reporters in Noumea on Thursday after a board meeting of SLN, the largest private employer on New Caledonia’s main island of Grande Terre.

The French Pacific territory is home to a quarter of the world’s reserves of nickel, a key ingredient in the manufacture of stainless steel, rechargeable batteries and coins.

Buffet’s warning came after parent group Eramet last month posted a 5.0-percent drop in third-quarter sales to 754 million euros ($1 billion), mainly because of slumping nickel prices.