Nickel demand tipped to surge
LEGEND Mining managing director Mark Wilson is certain his company’s Rockford project in WA’s Fraser Range will see significant upside due to the expected increase in demand for nickel.
In 2015 the nickel stockpile sat at 900,000t, 12 months ago it was down to 260,000t and just weeks ago it slipped to 150,000t – which Mr Wilson said is due to political turmoil over the last year.
“All of this rhetoric about Trump and Xi Jin Ping and trade wars and tariffs have had an impact,” Mr Wilson said.
“And don’t underestimate the influence of Brexit, because many of you would be aware that the London market has been a massive source of capital for mining; most people will tell you the London market is paralysed by the uncertainty around Brexit.
“The negative sentiment from the Trump rhetoric, Xi Jin Ping, trade wars, tariffs and Brexit is totally dominating the fundamentals of a stockpile that’s decreasing and a balance that’s in deficit.”
Essentially, there is more nickel being consumed today than is being produced, and Mr Wilson said if the stockpile drop from 900,000t to 150,000t isn’t a fundamental demand qualification, he would be very surprised.
“The other thing that the nickel market’s got going for it is the electric vehicle battery demand outlook.
“Nickel is the main component of these electric vehicle batteries,” he said. “There are other more trendy metals like lithium and cobalt – and I don’t wish to denigrate the importance of them – but nickel is the 8 in the 8:1:1 component of electric vehicle batteries.”
There could be up to 5mt of nickel required in 2050. To put this in perspective, the current number today is 80,000t.
“When you read some of the reports coming out of Europe and China, and see the rate of conversion into electric vehicles, anyone who is saying it ain’t coming is not looking far enough out their window,” Mr Wilson said.
With the EV boom demand looming, it’s no wonder Legend Mining is confident in the value of developing their Rockford Nickel project in WA.