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