(Bloomberg) — Last month, 13 copper-industry representatives at the London Metal Exchange were asked whether Russian metal should be blocked from its warehouses. Ten of them said “yes.” But when advisory groups for nickel and aluminum discussed the same question, the general consensus was “no.”
The LME, which is the ultimate decision-maker, says it won’t take action that goes beyond government sanctions — which, so far, have left most of the metals industry untouched.
https://northernontario.ctvnews.ca/
It’s been a wild ride for nickel prices this month. After soaring to almost US$22 a pound, the London Metals Exchange (LME) halted trading for several days March 8, outraging many investors.
A major reason the LME intervened was a major Chinese nickel producer stood to lose billions because it had bet prices would be lower. Investors sometimes try to protect themselves from volatile prices by betting prices will be lower in the future, a process known as short selling.
The United States will likely need to massively increase its reliance on imports of foreign metals if it is to meet the Biden administration’s goal of moving the country to mainly electric vehicles.
U.S. production of the key metals needed to make EV batteries is already only a small percentage of national demand, so increasing sales of electric vehicles to 50 percent of all new car sales by 2030 will require replacing one set of trading relationships — ones built on oil — for another.
Electric vehicle giant Tesla (NASDAQ: TSLA) is said to have secured a multi-year deal with Vale (NYSE: VALE) for the supply of nickel, one of the key ingredients in the batteries that power EVs.
The yet to be disclosed agreement, reported by Bloomberg News, will see the Brazilian miner supply nickel produced in Canada to the EV maker, which has spent the past year signing pacts with several producers of battery metals.
(Bloomberg) — Furious investors and traders. Evaporating liquidity. A market that many veterans simply describe as “broken.” It’s been three weeks since nickel was suspended on the London Metal Exchange after a 250% price spike and while trading has resumed, the market remains all but paralyzed.
As the crisis plays out, accusations are already beginning to fly. Investors are preparing lawsuits; the LME and its regulator, the Financial Conduct Authority, are likely to run investigations. It’s far from clear that any party broke any rules — it may be that the rules just weren’t fit for purpose.
https://www.northernontariobusiness.com/
Sudbury mines and service sector generates $3.3 billion in GDP for Ontario
The Ontario Mining Association (OMA) released a report showing the contribution of the mining sector to the provincial economy. The State of the Ontario Mining Sector, was published by the OMA in partnership with the Ministry of Northern Development, Mines, Natural Resources and Forestry.
Ontario’s mining industry contributed an estimated annual total of $7.5 billion to Ontario’s gross domestic product (GDP), $3.3 billion in wages and salaries, and sustained over 48,605 full-time jobs.
After the nickel market goes haywire, the United States and its allies launch a critical minerals energy security plan, with stockpiling an option.
A silver sedan rolled off of the General Motors assembly line in Spring Hill, Tennessee, last Monday that represented the $35 billion bet the company is making on the future inside the chassis of its most storied brand.
It was GM’s first all-electric Cadillac Lyriq, launched nine months earlier than scheduled and signaling that the automaker is charging full-speed-ahead on its transition to electric vehicles, despite tumultuous times.
http://www.journal.forces.gc.ca/
Located in the heart of northeastern Ontario, the city of Sudbury is often referred to as the ‘Nickel Capital’ for its historic relationship with this particular metal. Indeed, by the eve of the First World War, it had become the world’s leading producer of nickel, and by 1950, its share of the global supply peaked at 95 percent.1
Also known as ‘devil copper,’ worldwide demand for nickel remained strong throughout much of the 20th Century, largely as a result of its far-reaching military applications. While the citizens of Sudbury are generally well aware of this mining legacy, others may not be as familiar with the significance of nickel in Canadian political and military history. This is hardly surprising. As renowned historian J.L. Granatstein once asserted, there is a lack of “…serious scholarship on Canada’s industrial [war effort],” including its mineral and mining sectors.2
LONDON, March 25 (Reuters) – London Metal Exchange (LME) three-month nickel is currently trading at $35,150 per tonne. This is in itself something of an achievement for the exchange. It’s not been easy restarting the London nickel market after its March 8 breakdown and ensuing week-long suspension.
Since trading resumed on March 16 we’ve had four limit-down days and two limit-up days, briefly interrupted by a day of almost normal trading on March 22. Official and closing prices have been declared “disruption events” six times.
https://www.canadianminingjournal.com/
Marten Falls Chief Bruce Achneepineskum is eager to start work on a 200-km permanent, all-season road to his remote, fly-in First Nations community in the James Bay Lowlands, about 170 km northeast of Nakina.
Achneepineskum says the road, which would link to forestry roads near the Aroland First Nation near Nakina, would be a “lifeline into the community,” making the shipment of fuel, building materials, food and other essentials more affordable, and allowing community members to travel more freely. An all-season road is also becoming a more urgent necessity as the winter ice road seasons become shorter and less reliable because of climate change.
Nickel surged by the 15% exchange limit for a second day in London, putting the spotlight back on bearish position holders just two weeks since the market was roiled by an historic short squeeze.
Nickel futures remained locked at the price limit by Thursday afternoon on the London Metal Exchange, as the latest spike extends a period of unprecedented turmoil for the market. Prices soared over 250% over two trading sessions in early March during the short squeeze centered on China’s Tsingshan Holding Group Co., before the market was suspended.
Over 50% of the gross output by Ontario’s mining industry comes from Sudbury
SUDBURY MARCH 24, 2022: A new report, State of the Ontario Mining Sector, published by the Ontario Mining Association (OMA) in partnership with Ontario’s Ministry of Northern Development, Mines, Natural Resources and Forestry, demonstrates the majority of regional economic contributions from mining in Ontario occurs in the Sudbury region, with total annual economic contributions in 2019 of approximately $7.5 billion in gross output and $3.3 billion in GDP.
“The opportunities for the Ontario mining industry in Sudbury have arguably never been greater than they are now. As the world emerges from the COVID-19 pandemic, faces increasing geopolitical uncertainty and as the race to halt climate change accelerates, the region is primed to continue contributing meaningful solutions, while capitalizing on rising global demand for green and critical minerals,” stated Chris Hodgson, President of the Ontario Mining Association.
https://www.thesudburystar.com/
Viviane Lapointe is the Liberal MP for Sudbury.
Nickel a critical mineral as world looks to decarbonize
Very quietly last November, the United States Geological Survey added nickel and zinc to the list of that country’s critical minerals, or minerals essential to the economic and national security of the U.S. and its supply chain.
The addition of nickel and zinc to the USGS critical minerals list is important for two reasons. And both of those reasons bode well for Sudbury, Northern Ontario and Canada.
The London Metal Exchange’s two-week-long inability to facilitate the free flow of nickel trades has locked up the nickel market from investment and sowed uncertainty across the metal’s supply chain.
The LME provides crucial price transparency for nickel suppliers and buyers negotiating long-term nickel supply deals and gives critical signals to financers looking to back production capacity growth amid high prices.
https://www.canadianminingjournal.com/
This year’s annual U-Haul Growth Index, which tracks the net gain of one-way U-Haul trucks arriving in a Canadian city, ranked North Bay, Ont., as the country’s leading growth city for the second year in a row with Sudbury following close behind in third place.
Covid-19 and skyrocketing housing prices in the Greater Toronto Area certainly had something to do with it, but both cities owe much of their appeal to the economic impact of northeastern Ontario’s mining cluster.
