With electric vehicle demand accelerating, the industry will require more nickel supply. In fact, according to Zacks.com, “Per Fastmarkets, demand for nickel in EV batteries accounts for around 10% of the total demand but that is set to witness massive growth. Fastmarkets estimates demand for nickel from the battery industry to increase from the 2022 level of around 280,000 tonnes worldwide to 314,000 tonnes in 2023 and 1,389,985 tonnes by 2030. Statista projects global nickel demand for nickel in EV batteries to grow tenfold from 60,000 metric tons in 2018 to some 665,000 tons worldwide by 2025.” That’s a major catalyst for companies such as Power Nickel Inc. (TSXV: PNPN) (OTCBB: PNPNF), BHP Group (NYSE: BHP), Vale (NYSE: VALE), Sherritt International (TSX:S) (OTC: SHERF), and Nickel 28 Capital Corp. (TSXV: NKL) (OTC: CONXF).
Automakers, like Ford even just partnered with mining company PT Vale Indonesia and Zhejiang Huayou to increase nickel production in Indonesia. Also, in 2022, General Motors signed a deal with Vale for more nickel supply, which is critical for the EV supply chain.
Look at Power Nickel Inc. (TSXV: PNPN) (OTCBB: PNPNF), For Example
Power Nickelannounced it has closed the final tranche of the private placement previously announced on March 13, 2023 for 1,032,000 flow-through units (each, an “FT Unit”) of the Company, at a price of $0.50 per FT Unit, for gross proceeds of CAD $516,000. The Company has received conditional TSX Venture Exchange approval for the Private Placement.
“We are pleased to close the final tranche of our previously announced Private Placement. It ended up at $4,810,000. We could have hung around for another week and closed more, but we just wanted to get this closed and focus on getting more great results out on our drilling and exploration program at Nisk " said Power Nickel CEO Terry Lynch. “At the risk of being repetitive, we have benefited greatly by having our project in Quebec, where very favorable incentives exist for Critical Mineral projects like our NISK Nickel Sulfide project at Nemaska.” Lynch commented further, “Quebec, Canada is, in our opinion, the World’s leading jurisdiction for exploration for Critical Minerals. This was further cemented by the recent Quebec and Canadian budgets, which provide substantial incentives to explore Critical Minerals and build mines. In our case, this financing is focused on exploration, and we were able to raise twice as much money with half the dilution. Going forward, the new, unappreciated by the market incentives, could, for example, advance as much as $200 Million USD to building a $400 Million Nickel Mine. While significant steps remain before determining if a mine would be viable and the budgets are not yet law, these are substantial incentives that de-risk projects for investors and enable governments to inspire investment and development in the critical mineral sector. We look forward to utilizing these incentives on our quest to build the world's first Carbon Neutral Nickel Mine”.
The Company expects to have additional assays available for release next week and believes the next two months could be among the busiest and best for Power Nickel.
“We are planning to have multiple material releases coming on additional assay results, the results of the Airborne EM, the release of the results of the metallurgical study, The commencement of the Fleet Ambient Noise Tomography program, and some potential major surprises. Nisk is delivering the goods, and we will be working hard to get the word out via our appearances at multiple conferences and a heavy Podcast schedule,” commented CEO Terry Lynch.
Other related developments from around the markets include:
BHPAmericas President Rag Udd said it is imperative to streamline the permitting process, push for regulatory and fiscal certainty for the development of large mining investments, while highlighting the natural resources company's willingness to increase its contribution to the country.The President of BHP Americas, Rag Udd, spoke at the World Copper Conference and called for a broad public-private agreement to enable new long-term investments in the mining sector in Chile, guaranteeing faster permit delivery and ensuring regulatory and fiscal certainty. In a panel discussion with other mining company executives, Rag Udd addressed the urgent need to reduce investment uncertainty so that the industry can keep developing capital-intensive projects that can continue to contribute to the country's development.
Sherritt International, a world leader in the mining and refining of nickel and cobalt – metals essential for the growing adoption of electric vehicles, said it is filing an updated National Instrument 43-101 Technical Report (NI 43-101 or 2023 Moa JV Technical Report) for the Moa Joint Venture (the Moa JV) indicating that current reserves are expected to support a 26 year life of mine. “The updated reserves and associated life of mine at the Moa JV underpins and validates our long-term strategy for producing low cost, high purity nickel and cobalt,” said Leon Binedell, President and CEO of Sherritt International. “With an estimated 26-year mine life and a strong market outlook for our products, the revised economics supports both our near-term strategy of expanding production capacity and our long-term growth ambitions to meet the demand from evolving markets increasingly driven by the energy transition and, in particular, electric vehicle battery supply chains.”
Nickel 28 Capital Corp. provided operational results for the quarter ending March 31, 2023 for the Company’s largest asset, the Ramu Nickel-Cobalt integrated operation in Papua New Guinea. "Ramu delivered strong operational and financial results again with operations performing at 111% of nameplate capacity in the first quarter of this year," stated Nickel 28’s Executive Chairman, Anthony Milewski. "In addition, we are seeing reductions in input and operational costs which resulted in improved production costs compared to the last quarter. We expect that Ramu’s full year costs and production will remain within guidance being 33,000 tonnes of contained Ni in MHP and cash costs in the range of $2.50-$3.50/lb. of Ni. The first quarter saw sales improve from traditionally sluggish first quarters and we anticipate sales to remain strong for the balance of 2023 as EV production increases globally.”
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