| As an exceptionally versatile metal, nickel | | | | expansion in both Finland and the United |
| enjoys a special place in the industrial | | | | Kingdom accounted for most of the 48% (60,000 |
| world. With its lustrous, silvery-white | | | | ton) increase in production, while expanded |
| appearance, low thermal and electrical | | | | production in Australia and New Caledonia |
| conductivities, high resistance to corrosion | | | | accounted for all of the 39% (35,000 ton) |
| and oxidation, excellent strength and | | | | increase in Oceania . Japan accounted for |
| toughness at higher temperatures, ability to | | | | most of the 22% increase in production in |
| be magnetized, and a melting point of | | | | Asia during that same period. |
| 1453° C, nickel is not only attractive and | | | | |
| durable in its own pure form; it also readily | | | | The rising demand for nickel production , |
| alloys with many other metals. | | | | with its associated high commodity prices, |
| | | | has spawned new approaches to nickel |
| Nickel is readily recognized in coins, where | | | | production. Historically, most sulfide nickel |
| it is used by many countries in both pure and | | | | ore bodies are mined underground at |
| alloy forms, and as bright and durable | | | | relatively low production rates and with |
| electrolytically-applied "nickel plating" | | | | mining costs that can approach $20 per ton, |
| coatings on steel. Its primary use, however, | | | | or even more. The current lack of high grade |
| is as an alloying component with chromium and | | | | nickel sulfide exploration targets has more |
| other metals in the production of stainless | | | | recently shifted attention to laterite nickel |
| and heat-resistant steel used not only in | | | | deposits, which can be mined at low cost |
| industry and construction, but also for | | | | using modern mining and process methods that |
| household products such as pots and pans, | | | | recover ore at grades well below those that |
| kitchen sinks, and other everyday items. | | | | had traditionally been exploited. These new |
| Stainless steel is produced in a wide range | | | | methods are changing the way large mining |
| of compositions to meet industry requirements | | | | companies and knowledgeable investors are |
| for corrosion and heat resistance, and also | | | | looking at mineral properties. |
| to facilitate a clean and hygienic surface | | | | |
| for food and other processing. | | | | The trend began in the 1960's with copper |
| | | | projects going from smaller underground |
| About 65% of nickel is used to manufacture | | | | operations, often with grades exceeding 2% to |
| stainless steel. Around 20% is used in other | | | | larger low grade projects withgrades that |
| steel and non-ferrous alloys, often for | | | | could be less than 0.5%. By the 1970's the |
| specialized industrial, aerospace and | | | | bulk mining of other low grade metals was |
| military applications. About 9% is used in | | | | advancing, most notably gold using new |
| plating, while 6% in used in other | | | | hydrometallurgical techniques at grades well |
| applications, including coins and a variety | | | | below those that had traditionally been |
| of nickel chemicals. | | | | exploited. It may now be nickel's turn to |
| | | | benefit from this approach. Historically most |
| As the emerging middle class in countries | | | | sulfide nickel ore bodies have had grades of |
| such as China and other Asian nations demand | | | | 1% to 2% Ni, mined underground at relatively |
| more stainless steel products from sinks to | | | | low production rates and with high operating |
| door handles, nickel consumption is on the | | | | costs. Laterite nickel deposits can be bulk |
| rise. Stainless steel currently accounts for | | | | mined, but the nickel can't be concentrated, |
| about two-thirds of nickel consumption up | | | | so that both capital and operating costs are |
| from one-third in the past three decades. | | | | typically higher than sulfide projects. As a |
| While nickel demand in Europe and the | | | | result major mining companies are not |
| Americas decreased in the period from | | | | necessarily looking for high grades, but |
| 1997-2002, this demand increased in Asia and | | | | rather for large tonnage potential that can |
| the former East Bloc countries. | | | | be shown to be economically attractive. |
| | | | |
| Chinese nickel consumption increased by 15.4% | | | | One example of low grade sulphide nickel |
| in 2005, slightly less than the 19.1% growth | | | | deposits is Hard Creek Nickel Corporation's |
| reported in 2004. Chinese consumption during | | | | (HNC) 100% owned Turnagain Project located |
| this decade has actually been the single | | | | near Dease Lake , BC , Canada . Turnagain's |
| largest factor impacting the nickel market, | | | | nickel grades, low by traditional standards, |
| with supply struggling to keep pace with this | | | | show exciting potential if treated with newly |
| rising demand due to a physical shortage of | | | | developed process technology, and a bulk |
| the metal. In fact, China recently announced | | | | tonnage open pit mining approach. At |
| a cut-back in stainless steel production | | | | Turnagain, early stage process studies |
| because they are unable to source enough | | | | carried out by several independent and well |
| nickel. | | | | recognized mineral industry testing |
| | | | laboratories suggest that there are promising |
| This rising demand and limited supply is | | | | opportunities to recover metal on site, at a |
| pushing up prices. As of July 2006, nickel | | | | high production rate, for an excellent |
| was trading at over $12.00US per pound in | | | | financial return on the necessary capital |
| contrast to historical prices of less than | | | | investment for equipment, steel, cement, |
| $5.00US over the previous 15 years. Experts | | | | energy, labor and other costs, while nickel |
| predict that this continued high demand - | | | | is priced at historical levels. |
| based not only on China 's continuing | | | | |
| economic boom but also on the West's demand | | | | In a Preliminary Assessment recently prepared |
| for hygiene, will continue for the | | | | by AMEC Americas Limited (AMEC), one of the |
| foreseeable future. | | | | top three international mine engineering |
| | | | design firms, a 50,000 tons per day milling |
| Only about 1.3 million tons of new or primary | | | | operation by Hard Creek Nickel at Turnagain |
| nickel are produced and consumed annually, | | | | is modeled with a 17 year mine life that is |
| compared with over 15 million tons of copper | | | | predicted to produce a total of 833 million |
| and nearly 800 million tons of steel. The | | | | pounds of nickel, 57 million pounds of cobalt |
| growing world economy through the | | | | and 85 million pounds of copper over the life |
| mid-nineties triggered an expansionary drive | | | | of the mine, representing the largest new |
| in nickel capacity by existing manufacturers | | | | nickel deposit in Canada. There are very few |
| resulting in a production increase of 30%in | | | | similar low-grade nickel projects in the |
| the five year period from 1993-1998. European | | | | world. |