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