A world made of metal


Nickel stocks

Exploring the nickel mining industry inKingdom accounted for most of the 48%
Canada and China's needs and shortages(60,000 ton) increase in production,
for stainless steel manufacturing.while expanded production in Australia
As an exceptionallyand New Caledonia accounted for all of
versatile metal, nickel enjoys a specialthe 39% (35,000 ton) increase in
place in the industrial world. With itsOceania. Japan accounted for most of the
lustrous, silvery-white appearance, low22% increase in production in Asia
thermal and electrical conductivities,during that same period.
high resistance to corrosion andThe rising demand for nickel production,
oxidation, excellent strength andwith its associated high commodity
toughness at higher temperatures,prices, has spawned new approaches to
ability to be magnetized, and a meltingnickel production. Historically, most
point of 1453° C, nickel is not onlysulfide nickel ore bodies are mined
attractive and durable in its own pureunderground at relatively low production
form; it also readily alloys with manyrates and with mining costs that can
other metals.approach $20 per ton, or even more. The
Nickel is readily recognized in coins,current lack of high grade nickel
where it is used by many countries insulfide exploration targets has more
both pure and alloy forms, and as brightrecently shifted attention to laterite
and durable electrolytically-appliednickel deposits, which can be mined at
"nickel plating" coatings on steel. Itslow cost using modern mining and process
primary use, however, is as an alloyingmethods that recover ore at grades well
component with chromium and other metalsbelow those that had traditionally been
in the production of stainless andexploited. These new methods are
heat-resistant steel used not only inchanging the way large mining companies
industry and construction, but also forand knowledgeable investors are looking
household products such as pots andat mineral properties. The trend began
pans, kitchen sinks, and other everydayin the 1960's with copper projects going
items. Stainless steel is produced in afrom smaller underground operations,
wide range of compositions to meetoften with grades exceeding 2% to larger
industry requirements for corrosion andlow grade projects withgrades that could
heat resistance, and also to facilitatebe less than 0.5%. By the 1970's the
a clean and hygienic surface for foodbulk mining of other low grade metals
and other processing. About 65% ofwas advancing, most notably gold using
nickel is used to manufacture stainlessnew hydrometallurgical techniques at
steel. Around 20% is used in other steelgrades well below those that had
and non-ferrous alloys, often fortraditionally been exploited. It may now
specialized industrial, aerospace andbe nickel's turn to benefit from this
military applications. About 9% is usedapproach. Historically most sulfide
in plating, while 6% in used in othernickel ore bodies have had grades of 1%
applications, including coins and ato 2% Ni, mined underground at
variety of nickel chemicals. As therelatively low production rates and with
emerging middle class in countries suchhigh operating costs. Laterite nickel
as China and other Asian nations demanddeposits can be bulk mined, but the
more stainless steel products from sinksnickel can't be concentrated, so that
to door handles, nickel consumption isboth capital and operating costs are
on the rise. Stainless steel currentlytypically higher than sulfide projects.
accounts for about two-thirds of nickelAs a result major mining companies are
consumption up from one-third in thenot necessarily looking for high grades,
past three decades. While nickel demandbut rather for large tonnage potential
in Europe and the Americas decreased inthat can be shown to be economically
the period from 1997-2002, this demandattractive. One example of low grade
increased in Asia and the former Eastsulphide nickel deposits is Hard Creek
Bloc countries. Chinese nickelNickel Corporation's (HNC) 100% owned
consumption increased by 15.4% in 2005,Turnagain Project located near Dease
slightly less than the 19.1% growthLake, BC, Canada. Turnagain's nickel
reported in 2004. Chinese consumptiongrades, low by traditional standards,
during this decade has actually been theshow exciting potential if treated with
single largest factor impacting thenewly developed process technology, and
nickel market, with supply struggling toa bulk tonnage open pit mining approach.
keep pace with this rising demand due toAt Turnagain, early stage process
a physical shortage of the metal. Instudies carried out by several
fact, China recently announced aindependent and well recognized mineral
cut-back in stainless steel productionindustry testing laboratories suggest
because they are unable to source enoughthat there are promising opportunities
nickel. This rising demand and limitedto recover metal on site, at a high
supply is pushing up prices. As of Julyproduction rate, for an excellent
2006, nickel was trading at overfinancial return on the necessary
$12.00US per pound in contrast tocapital investment for equipment, steel,
historical prices of less than $5.00UScement, energy, labor and other costs,
over the previous 15 years. Expertswhile nickel is priced at historical
predict that this continued high demandlevels. In a Preliminary Assessment
- based not only on China's continuingrecently prepared by AMEC Americas
economic boom but also on the West'sLimited (AMEC), one of the top three
demand for hygiene, will continue forinternational mine engineering design
the foreseeable future.firms, a 50,000 tonne per day milling
Only about 1.3 million tons of new oroperation by Hard Creek Nickel at
primary nickel are produced and consumedTurnagain is modeled with a 17 year mine
annually, compared with over 15 millionlife that is predicted to produce a
tons of copper and nearly 800 milliontotal of 833 million pounds of nickel,
tons of steel. The growing world economy57 million pounds of cobalt and 85
through the mid-nineties triggered anmillion pounds of copper over the life
expansionary drive in nickel capacity byof the mine, representing the largest
existing manufacturers resulting in anew nickel deposit in Canada. There are
production increase of 30%in the fivevery few similar low-grade nickel
year period from 1993-1998. Europeanprojects in the world.
expansion in both Finland and the United



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