"We expect to see nickel prices move higher once the export restrictions kick in." If Chinese pig iron smelters can't get their feed from Indonesia, they will have to look elsewhere.
Mark Selby, Senior VP of Business Development for Royal Nickel Corp.
Focus: Advancing a large nickel sulphide project in Quebec
Can you give us your perspective on what is happening in the nickel market right now?
“Indonesia, a country that supplies about 15% of the world’s nickel, has introduced legislation aimed at banning exports of unprocessed nickel. This could happen as early as May and would affect countries like China and Japan, which are large importers of Indonesian nickel. Producers will have to produce a credible plan to process ore in Indonesia or have their export licenses revoked.”
How do you think this will play out over the next few months?
“Due to growth concerns in China, mining development stories haven’t been getting a lot of investor attention. But we expect to see nickel prices move higher once the export restrictions kick in. If Chinese pig iron smelters can’t get their feed from Indonesia, they are going to have to turn to other suppliers.”
How is this impacting the exploration and production side of the industry?
