The boss of an ASX-NYSE listed miner says even if miners could fetch a green premium, it may not be enough to make nickel mined outside Indonesia attractive.
The boss of acquisitive copper producer Metals Acquisition says the nickel market has “fundamentally shifted” and it is unlikely the world’s largest buyer, China, will pay a “green premium” for the commodity.
Mr McMullin can acquire more mines thanks to a lending syndicate backed by foreign banks, but the economics of buying a nickel mine outside Indonesia in a tier one jurisdiction are tricky.“The cost curve in nickel has fundamentally shifted down. And to buy an asset we need to be able to balance the cost curve,” Mr McMullin said.
“That was selling to US and European car companies who actually cared about this sort of thing. That’s the quantum of premium you’re going to get. And so I doubt that’s enough to move the needle on nickel.” He wouldn’t rule out investing in lithium but said he did not see it as attractive, citing price volatility in the market.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Nickel price collapse: Pentagon pitched Australian nickel investmentResources Minister Madeleine King met officials to discuss investments in the nickel industry in Australia.
Read more »
Australian nickel: Anthony Albanese plans tax credits to help nickel minersThe Albanese government is fast-tracking a system of production tax credits to try to protect the ailing nickel mining industry.
Read more »
BHP share price: Forget nickel, BHP’s next big call is a test for AustraliaBHP CEO Mike Henry’s next big call is on how to grow its copper business. He says Australia’s IR, tax and approvals policies could turn it away from Australia.
Read more »
Nickel producers in Western Australia face closures as prices dropFive nickel producers in Western Australia are scaling back operations or going into care and maintenance as the price of nickel drops.
Read more »
A supply glut of nickel is squeezing Australia out of the marketTrusted and independent source of local, national and world news. In-depth analysis, business, sport, weather and more.
Read more »
Why there's no silver bullet for the nickel pickle facing the Albanese governmentIt's a roller coaster commodity: peaks that can draw prime ministers and billionaires to town, but troughs that could make your stomach drop. So, can Australia hang on for the ride?
Read more »