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Nickel

Battery Metal Price Plunge Is Closing Mines and Stalling Deals – by Thomas Biesheuvel (Bloomberg News – January 2024)

https://www.bnnbloomberg.ca/

(Bloomberg) — A meltdown in some of the most-hyped energy-transition metals is wreaking havoc across the mining world, stalling projects, scuppering deals and triggering a scramble for cash that promises to reverberate through the industry for years.

Lithium — the ultra-light metal used in electric-vehicle batteries — has plunged more than 80% from a late-2022 record, as the market whiplashed from shortage fears to a mountain of surplus inventories. Nickel and cobalt have also tumbled, weighed down by an influx of new production amid concerns that the shift to EVs may not be as smooth and quick as predicted.

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Agnico Eagle invests $23M for 12% of Canada Nickel – by Marilyn Scales (Canadian Mining Journal – January 2, 2024)

https://www.canadianminingjournal.com/

Agnico Eagle Mines (TSX: AEM; NYSE: AEM) made a $23.1-million investment in the recent flow-through offering from Canada Nickel Company (TSXV: CNC; OTCQX: CNIKF). Agnico acquired 19.6 million units at a price of $1.18 per unit for a total consideration of slightly more than $23.1 million. This gives Agnico a non-diluted equity interest in Canada Nickel of 12% or 15.6% on a partially diluted basis.

Canada Nickel raised a total of $34.7 million. Each unit consists of one flow-through share and 0.35 of one flow-through share purchase warrant. Each warrant entitles the holder to purchase an additional common share at a price of $1.77 any time prior to Dec. 29, 2026, or the expiry date.

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Northeastern Ontario nickel miners not threatened by flood of the metal from Indonesia – by Kate Rutherford (CBC News Sudbury – January 03, 2024)

https://www.cbc.ca/news/canada/sudbury/

Environmentally sound production increasingly important factor in sourcing the critical mineral

Low nickel prices partly attributed to a flood of the metal coming onto the market from Indonesia aren’t deterring nickel miners in northeastern Ontario from moving forward in the coming year.

The price of nickel per pound was hovering around $7.42 US on January 1, 2024 compared to just under $14 a year prior. Paul Fowler is vice president of Magna Mining which owns the Shakespeare mine near Espanola and the Crean Hill mine near Whitefish.

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How reconciliation is tied up in the Ring of Fire – by Niall McGee (Globe and Mail – December 31, 2023)

https://www.theglobeandmail.com/

In remote Ontario, Marten Falls First Nation hopes to move past more than 100 years of subjugation, as it opens the door to critical minerals development and an all-season road that will change their lives

As crazy hectic as your life may be, it likely doesn’t hold a candle to that of Bruce Achneepineskum. He is chief of Marten Falls First Nation, an extremely remote Anishinaabe community on the banks of the Albany River in Ontario’s far north, about 400 kilometres northeast of Thunder Bay. As chief, Mr. Achneepineskum wears many hats. He oversees his council. He’s a mentor, a spiritual figure, an artist and a fire marshal. He’s a father of two grown children from his first wife, and of a 17-month-old boy with his current partner.

The needs in Marten Falls are immediate and stark. There is a severe shortage of homes. A boil-water advisory has been in place for 18 years. There are endemic social problems that never seem to go away – youth suicide, alcoholism and opioid addiction.

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March: Updates on critical mining in northern Ontario – by By Norm Tollinsky (Canadian Mining Journal – December 21, 2023)

https://www.canadianminingjournal.com/

When George Pirie, Ontario’s mines minister, closes his eyes and imagines what a resurgent northern Ontario mining industry will look like five years from now, he might see new nickel mines in Sudbury and Timmins, a battery industrial park in Cobalt, haul trucks transporting nickel concentrate on the recently completed road from the Ring of Fire, and multiple lithium mines and processing facilities in northwestern Ontario.

It is a good bet that much of the scenario will indeed materialize. The drills are confirming that the resources are there, the environmental assessments are progressing, and meetings with battery manufacturers and the automobile industry are resulting in offtake agreements.

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Struggling nickel sector ‘disappointed’ by critical minerals snub – by Peter Ker and Brad Thompson (Australian Financial Review – December 18, 2023)

https://www.afr.com/

The boss of Andrew Forrest’s private mining company says nickel’s omission from Australia’s expanded critical minerals list is “disappointing” at a time when weak prices for the battery metal are endangering “hundreds” of Australian mining jobs.

Wyloo Resources boss Luca Giacovazzi issued the warning on the same day the federal department of industry warned of more “downward pressure” on nickel prices in 2024 because Indonesian miners were poised to oversupply nickel markets for years to come.

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BHP issues dire warning on nickel mines – by Brad Thompson and Peter Ker (Australian Financial Review – December 15, 2023)

https://www.afr.com/

The overhaul of the Albanese government’s critical minerals strategy offers no relief to the besieged nickel industry, which faces further job losses at BHP-owned mines.

BHP said its Nickel West business was not immune to the challenges suffocating the sector where some mines have shut down, and fellow producer Panoramic Resources was tipped into administration this week. Nickel West asset president Jessica Farrell said uncertainty had swept through the Australian nickel industry.

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Op-ed: Everyone loses as London’s High Court rules for LME in nickel case – by Alex Godell (Mining.com – December 7, 2023)

https://www.mining.com/

In March of 2022, a crisis transpired on the London Metal Exchange. It revolved around a colossal short position that one market participant amassed in nickel, betting that the price would fall. Instead, it surged. The resulting liabilities were so staggering that the whole exchange was at risk of collapse. To prevent implosion, the LME retroactively annulled several trades.

Elliott Associates, a US-based hedge fund, brought a lawsuit against the LME claiming that the exchange acted unlawfully in cancelling those transactions. Jane Street Global Trading also sued for damages.

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Area covered by mining claims in Ontario’s ‘Ring of Fire’ increased by 30 per cent in one year – by Krista Hessey (Global News – December 4, 2023)

https://globalnews.ca/

The so-called ‘Ring of Fire’ in Ontario’s far north is expanding in size as mining claims spike in the area. More than 31,000 mining claims have been registered to date, an increase of 28 per cent in a year, according to analysis by Wildlands League, a non-profit conservation group.

The rise in the number of mining claims coincides with more land being taken up by surface rights owners. The claims now cover 626,000 hectares of the remote northern landscape, up 30 per cent from September 2022. The area is now nearly 10 times the size of the City of Toronto or double the Greater Sudbury area, the group says.

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Glencore’s ties to Sudbury run deep. So is its future here – by Hugh Kruzel (Sudbury Star – December 2, 2023)

https://www.thesudburystar.com/

Top company official tells chamber of commerce deep mining is the key to Glencore’s future operations in Sudbury

The man who leads Glencore’s Sudbury operations told the city’s business leaders this week that his company remains committed to this region, Canada and mining. Peter Xavier, a company vice-president, acknowledged that Glencore Sudbury’s Integrated Nickel Operations will soon close its Nickel Rim South mine, but that should not be a surprise.

Nickel Rim South Mine will close in late March as it goes into care and maintenance mode. The Skead-area mine’s employees will be reassigned to other Glencore operations in Sudbury, such as the Craig/Onaping project. “Mines have a life,” Xavier told the 128th annual general meeting of the Greater Sudbury Chamber of Commerce. “We all know mining one site is finite.

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Three of Canada’s major critical mineral projects are in Sudbury – by Staff (Sudbury Star – November 22, 2023)

https://www.thesudburystar.com/

They are Glencore’s Onaping Depth project, Vale’s Copper Cliff Deep project and KGHM’s Victoria Mine project

The federal government has launched a $1.5-billion fund for critical minerals infrastructure, while simultaneously highlighting close to 500 projects nationwide that are generating jobs and growing a greener economy. The funding announcement this week coincided with the release of an annual report on major projects underway across the country in the fields of energy, forestry and mining.

Three of the big mining projects are in Sudbury: Glencore’s Onaping Depth project, with an estimated capital cost of $1 billion to $2.5 billion; the Copper Cliff Deep project being pursued by Vale, pegged at $750 million to $1B; and a revived Victoria Mine project being undertaken in the Whitefish area by Polish company KGHM, at a projected cost of $1B to $2.5B.

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Bears bet big that nickel can close the product gap – by Andy Home (Reuters – November 1, 2023)

https://www.reuters.com/

LONDON, Nov 1 (Reuters) – The bears are out in force on the London Metal Exchange (LME) nickel market. Fund players have lifted their bets on lower prices to levels last seen in 2019, or even earlier if expressed as a percentage of open interest.

It’s not hard to understand why. The LME three-month nickel price has been on the slide for most of the year, sucking in momentum-tracking technical funds. Currently trading around $18,000 per metric ton, nickel is down by 42% on the start of January and challenging chart support levels dating back to late 2021.

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Two Sudbury mining giants partner as Nickel Rim mine ramps down – by Amanda Hicks (CTV Northern Ontario – November 2, 2023)

https://northernontario.ctvnews.ca/

Glencore’s Nickel Rim South Mine is winding down operations with an eye on closing in 2024. Vice-president Peter Xavier said the mine has been important to the company since its inception in 2010.

He said exploration extended the mine’s lifespan from 2021 to 2024, but Glencore has been planning its closure for some time. This will create an opportunity to partner with the city’s other mining giant, Vale.

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Glencore says Nickel Rim South mine in Sudbury slowing down, but not closing altogether – by Kate Rutherford (CBC News Sudbury – November 1, 2023)

https://www.cbc.ca/news/canada/sudbury/

Glencore says feasibility study looking at partnership with Vale is about to begin and will go into next year

It has been a good run at Glencore’s Nickel Rim South mine in Sudbury, but for the time being, mining there is coming to an end. The vice-president of Sudbury operations, Peter Xavier, says the 15-year-old mine will transition to what it calls “care and maintenance” by next spring.

But there is more mining to be done in that area, and the next steps in a potential joint venture with Vale are under the magnifying glass. Xavier explains there’s a portion of the ore body where the property boundaries shared by the two companies intersect, but is difficult for each company to mine separately.

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Alaska Energy Metals stock rises on drill results at Nikolai nickel project – by Staff (Mining.com – October 30, 2023)

https://www.mining.com/

Alaska Energy Metals’ (TSXV: AEMC) stock rose on Monday after releasing results for two additional diamond drill holes from its 2023 exploration program at its 100% owned Nikolai nickel project.

The Nikolai project is possible host to disseminated nickel-copper-cobalt-PGE mineralization analogous to the Crawford deposit in Canada and the Norilsk mine in Russia, according to the company’s website.

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