Nickel on recovery path in January
Friday, 22 January 2010
SYDNEY, Jan 21 (Commodity Online): Nickel prices are heading north continuously this week following various news that demand for nickel will soar in the coming days whereas the production of the commodity may suffer in the coming days.
However, Australia's second-largest nickel producer Minara Resources Ltd said its 2009 nickel output at Murrin mine was at record high. But that was not the case as far as nickel companies in Canada are concerned. Xstrata's Sudbury is undergoing labour problems and the production at its mines could be hit by this.
Employees of the former Falconbridge, bought by Swiss-based Xstrata in 2006, are in talks with the company and have voted in favour of going on strike if a deal isn't reached by the time their contract expires on January 31.
Concerns that a strike at Xstrata Nickel's mines, mill and smelter in the Sudbury area would further deplete the world's nickel supply sent the price of the metal used to make stainless steel up by 28 cents to $8.71 on the London Metal Exchange. And the price could continue to rise if workers do go on strike.
More than 4,000 workers have been on strike at Vale's nickel mining and processing operations in Sudbury, Labrador and Port Colborne, Ont., since last summer.
Xstrata Nickel's Sudbury operations consist of the Nickel Rim South project, a mill and a smelter. The facilities are spread throughout the 60 kilometre, oval-shaped geological formation known as the Sudbury Basin. Nickel and copper are the primary metals but cobalt and precious metals, such as platinum are also produced.
Nickel Rim South was discovered in 2001 and is expected to provide high value ore feed for more than 15 years. The project is located nine kilometres north of the Sudbury smelter. Mine commissioning is scheduled to commence in 2009 with full mine production achieved in 2010.
The Strathcona mill receives ore from the mine and produces two concentrate streams- a copper concentrate which is treated at the Kidd Metallurgical complex and nickel concentrate which is transported to the Sudbury smelter for processing.
The Sudbury smelter smelts nickel-copper concentrate from the Sudbury, Raglan and Xstrata Nickel Australasia mines and processes custom-feed materials. The smelter's electric furnace converts the mineral concentrate into a high-grade matte containing nickel, copper, cobalt and platinum group metals. The smelted and granulated matte is transported to Nikkelverk in Norway for refining.
However, Australia's second-largest nickel producer Minara Resources Ltd said its 2009 nickel output at Murrin mine was at record high. But that was not the case as far as nickel companies in Canada are concerned. Xstrata's Sudbury is undergoing labour problems and the production at its mines could be hit by this.
Employees of the former Falconbridge, bought by Swiss-based Xstrata in 2006, are in talks with the company and have voted in favour of going on strike if a deal isn't reached by the time their contract expires on January 31.
Concerns that a strike at Xstrata Nickel's mines, mill and smelter in the Sudbury area would further deplete the world's nickel supply sent the price of the metal used to make stainless steel up by 28 cents to $8.71 on the London Metal Exchange. And the price could continue to rise if workers do go on strike.
More than 4,000 workers have been on strike at Vale's nickel mining and processing operations in Sudbury, Labrador and Port Colborne, Ont., since last summer.
Xstrata Nickel's Sudbury operations consist of the Nickel Rim South project, a mill and a smelter. The facilities are spread throughout the 60 kilometre, oval-shaped geological formation known as the Sudbury Basin. Nickel and copper are the primary metals but cobalt and precious metals, such as platinum are also produced.
Nickel Rim South was discovered in 2001 and is expected to provide high value ore feed for more than 15 years. The project is located nine kilometres north of the Sudbury smelter. Mine commissioning is scheduled to commence in 2009 with full mine production achieved in 2010.
The Strathcona mill receives ore from the mine and produces two concentrate streams- a copper concentrate which is treated at the Kidd Metallurgical complex and nickel concentrate which is transported to the Sudbury smelter for processing.
The Sudbury smelter smelts nickel-copper concentrate from the Sudbury, Raglan and Xstrata Nickel Australasia mines and processes custom-feed materials. The smelter's electric furnace converts the mineral concentrate into a high-grade matte containing nickel, copper, cobalt and platinum group metals. The smelted and granulated matte is transported to Nikkelverk in Norway for refining.