Second week of rioting and unrest in New Caledonia
It has also led to a sharp spike in the price of nickel, which has reached its highest level in nine months.
New Caledonia possesses an estimated 25 per cent of the world’s nickel resources and accounts for 6 per cent of global production of the metal, giving the territory a level of influence on industry that belies its size. “Anything that happens in New Caledonia is of interest to the nickel industry,” says Adrian Gardner, principal analyst for nickel markets at energy research firm Wood Mackenzie.
While New Caledonian nickel mines have been operational since 1888, their level of importance to France in particular has gone up in recent years...
New Caledonia’s two major nickel-processing facilities – known as Doniambo and Koniambo – account for nearly a quarter of the global supply used in ferronickel, an alloy that is one of the key materials used in stainless steel production.
“If you suddenly withdraw a quarter of the nickel required by the stainless steel industry just to stay the same, then you’ve got a mini-panic on your hands,” says Gardner. “So that is the real pressure point that New Caledonia has in terms of global nickel . "
BHP seems to have been a bit slow in capitulating here.
Perhaps the thing they got wrong was the general belief that the EV and battery industry as a whole was going to choose 'clean' nickel over the dirty Indonesia laterite crap that China is happy to use. Indonesia has certainly crapped on the market.
I wonder if the sulphide premium will ever eventuate or the market has just misjudged that battery makers will take the cheapest product instead of the greenest.
Maybe it's a turn around story as some stage.
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If you are considering a more likely a 50% drop than any gain why not sell it now?well i remember an article several years back , about a ( US ) uni project that created a spray on battery ( looked like a slow release capacitance to me , but i am no engineer ) , and despite being in early stage research looked like a game changer to me
so have always been hesitant about 'battery tech ' through the hype bubble ( but still got badly mauled with RFX and PAN )
and oddly BHP has been trying to decide what to do with Nickel West for years even before Mincor was taken over , maybe BHP should spend a few bucks and clean the windscreen )
i hold BHP
but nope i will wait for sub $20 BHP before considering increasing my holding
it is selling/closing assets and not showing clear paths to near term growth ( growth always seems to be 5 years away )
BTW expect write-downs over the OZL acquisition
RFX and PAN holdings are already less than brokerage costs ( so are all but crystallized tax write-offs )If you are considering a more likely a 50% drop than any gain why not sell it now?
well Indonesia was plenty of lower grade coal , iron ore ( of less than premium quality )and cheap abundant workforce and all relatively in a condensed area , why wouldn't any sensible industry value-add
Indonesia should not be blamed for the collapse of Australian nickel. Australia and Australians should be blamed for the collapse of Australian nickel. The obsession with gender diversity and bringing on lower experienced people, the extremely high wages being paid, flying everyone around business class everywhere, getting your mates to jack up all the rates on contracts so they can take you out to Optus stadium, short-term thinking by executives and shareholders to maximize quarter on quarter share prices.
The Australian nickel industry has done nothing to help itself. It's not Indonesia's fault.
We used to do it, before we outsourced our value adding.well Indonesia was plenty of lower grade coal , iron ore ( of less than premium quality )and cheap abundant workforce and all relatively in a condensed area , why wouldn't any sensible industry value-add
That's what China does, we used to call it dumping, now they call it giving us a thrashing. Lolfor those liking pictures and grabs .... 17mins
How China Took Over Indonesia’s Nickel Industry T…:
aka hegemonic behaviour.That's what China does, we used to call it dumping, now they call it giving us a thrash
Yes I think this is only the beginning, they will leverage into all their critical minerals, meanwhile we are locked in to buying all their manufactured critical infrastructure, our smugness will keep us warm. Lolaka hegemonic behaviour.
As I said quite a while back nickel is first, now it's lithium to the sword, funny how it's so predictable.Yes I think this is only the beginning, they will leverage into all their critical minerals, meanwhile we are locked in to buying all their manufactured critical infrastructure, our smugness will keep us warm. Lol
And then black swan like that
Nickel is back ... down
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Futures on the London Metal Exchange dropped as much as 2.3% Thursday, to the lowest level since November 2020. The commodity used in electric-vehicle batteries has been one of the worst performers among industrial metals on the bourse this year.
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