The price of nickel continues to climb. On the London Stock Exchange on Friday, the price of nickel rose 1.7% to $ 16,730 per tonne, its highest level since December 2014. There are several reasons for this increase, including the possible closure of a plant. nickel in Papua New Guinea.
A spill of toxic waste in a bay in Papua New Guinea is driving the metals market. The nickel processing plant Metallurgical Corp of China is the subject of several complaints and risks closure.
It was the last straw that broke the camel's back, or at least it was mentioned to justify this price increase.
But according to a mining industry expert and professor at Laurentian University, Jean-Charles Cachon, the price of nickel had already increased by 50% since the beginning of the year due to the decrease in official stocks and uncertainty that reigns around Indonesian exports of nickel.
Indonesia, a key producer in the sector, is about to introduce a ban on exporting the ore, he said.
Towards an increase in Canadian production?
This nickel price increase could benefit the Greater Sudbury region of Ontario, which operates several nickel deposits.
Sudbury producers are currently spending hundreds of millions a year to develop new all-electric mines at great depths, so the higher the price, the faster it will pay for the investments that have been made.explains Jean-Charles Cachon.
According to the professor, a possible increase in Canadian nickel production will not, however, create jobs, but
it's probably going to speed up the mechanization and the electric transition, he believes.