Canada’s Royal Nickel Corporation, led by a team of Brazil’s Vale SA executives, is expecting the Dumont open-pit nickel mine in northwestern Quebec, to start production in 2016 when metal prices are expected to be in an upswing.
Recently, nickel prices have been low because they have been mirroring the economic cycle, which is customary for base metals. Analysts blame overcapacity resulting from slower Chinese growth, the European debt crisis and North America’s lukewarm recovery from the recent 2008-09 recession.
Royal Nickel has been working to negotiate partnerships, hoping that when the mine hits its full stride in 2020 it could rival Vale’s Voisey’s Bay mine in Labrador, which produces 60,000 tonnes per year.
Royal Nickel has been working to negotiate partnerships, hoping that when the mine hits its full stride in 2020 it could rival Vale’s Voisey’s Bay mine in Labrador, which produces 60,000 tonnes per year.
In a recent interview, Tyler Mitchelson, Royal’s CEO, explained that, “We’ve been planning this for more than three years and we see a low-cost operation providing more than 500 permanent jobs, a mine life of at least 33 years and able to survive any future global economic cycles.”
Once the mill is up and running, Royal and a leading Chinese stainless steel company are working together on a process to use the sulphide nickel concentrates directly in stainless steel production, which will lower costs and make refining easier.
Once the mill is up and running, Royal and a leading Chinese stainless steel company are working together on a process to use the sulphide nickel concentrates directly in stainless steel production, which will lower costs and make refining easier.