Indonesia has banned all exports of raw nickel ore, which has placed increased pressure on prices. It has also helped make investors more interested in Royal Nickel’s $1.2-billion mining project in Northwestern Quebec.
Since the recent announcement of Indonesia’s ban, prices have stayed firm to approximately $6.50/pound USD. In addition global nickel inventories are near record highs, which is a reflection of China’s slower economic growth. Indonesia accounts for roughly 450,000 tons or over 25 percent of the global nickel market.
Royal Nickel’s mine on the Dumont property near Amos, has proven reserves for 33 years. Phase one will have the annual capacity of up to 60,000 tons of high-grade sulphide nickel, which is similar too the Voisey’s Bay project in Labrador. Royal Nickel received the Dumont feasibility study last year and is in the process of negotiating partnerships, offtake pacts and financing. The mine is due to be in commercial production by early 2017.