Good article...Shows the divisions within the nickel market and how the rest of the world is focusing on ESG and how those who chose not to be responsible are affecting the overall market. Over the next decade or two many investors will have to decide whether China really has the Earth's best interests in mind when they turn a blind eye to other countries destroying vast ecosystems just to give them the nickel they want, or need.
This is very irresponsible and the rest of the world has been watching for sometime now...Large funding companies like BlackRock have said that they are going stop exposing their clients to investments that are not eco-friendly and pose risk by not adhering to the Paris Accord..But does that mean that both China and Indonesia will soon become blacklisted from investment capital? Probably not. But I believe the world will soon start dividing the nickel into two separate markets...One for dirty, and one for clean...With a hefty price being placed on both...One price on dirty nickel because it costs more to process and then clean up the mess, and the other because it's hard to find and usually requires underground mining.
Either way....Prices have got to go up to satisfy these markets who can both see the ESG writing on the wall..Partly good, partly bad, and the full ugly truth.
TM.
https://www.mining.com/jakarta-to-jolt-sliding-nickel-price/
DRC vs HPAL DSTD
From an environmental standpoint, Indonesian nickel projects may come with even more red flags than artisanal cobalt from Congo (an issue that is finally being addressed).
Virtually all the new projects in Indonesia use high pressure acid leaching (HPAL) to extract nickel from low-grade laterite ores. Another nasty-sounding acronym associated with the country’s nickel output is DSTD (deep sea tailings disposal).
Apart from underpinning nickel prices, BMO believes Indonesia’s move should add impetus to projects outside the country:
“Given there are already concerns about the carbon footprint of Indonesian nickel, and the close ties into the China value chain, we anticipate [the Indonesian Investment Minister’s] announcement would push certain end users to renew efforts to source ex-Indonesia supply.”....
TM.
