Nickel

This overview should give you a base of information for your trading in the sector.

fig.1. Nickel Spot price on the LME

Some facts

Nickel is an alloy metal used in many industrial and consumer products, including stainless steel, magnets, glass, special alloys such as nickel brasses and bronzes, and alloys with copper, chromium, aluminium, lead, cobalt, silver and gold. 60% of global Nickel consumption is for nickel steels with alloys and plating comprising a further 25% of consumption.


fig.2. Nickel Sulphate

Canada produces about 30 percent of the world's supply of nickel form the Sudbury Basin deposit. This deposit is thought to have been created by a massive meteorite impact event early in the geologic history of Earth. Russia contains about 40% of the world's known resources at the Norilsk deposit in Siberia. Other major deposits of nickel are found in New Caledonia, Australia, Cuba, and Indonesia.

On the market

Companies listed on the ASX with interests in Nickel Mining and exploration include the following (click on the code to open the company website in a new window):

BHP Billiton (BHP) - Major resources producer with Nickel a project in Perseverance in WA.

Breakaway Resources (BRW) - (formerly Amalg Resources NL) has Nickel and Gold projects in QLD and WA. Will acquire LionOre Mining International's Australian nickel exploration assets.

Consolidated Minerals (CSM) - Production from projects in Port Hedland and Coobina in WA. Owns 20% of Mithril resources and 20% of Reed resources (exploration).

Echo Resource (EAR) - diversified exploration in WA

FerrAus Ltd (FRS) - has a joint venture with Mithril Resources in the Silver Swan North nickel project near Kalgoorlie in WA. Also owns the Robertson Range iron ore project.

Fox resources (FXR) - Exploration focussed on the Radio Hill nickel project in Karatha, WA. Also interests in Copper production and Gold prospecting.

Heron Resources Ltd (HRR) - Nickel focussed exploration company that also has a track record of development, packaging and selling of projects. i.e. Regent Resources (gold), Ochre Resources (Iron Ore and diversified metals), Balladonia Energy (Oil Shale).

Independence Group NL (IGO) (formerly Independence Gold NL) acquired Nickel mine from WMC and exploration licences in WA for Nickel and Gold.

LionOre Mining (LIM) - Production and development projects in Kalgoorlie & Norseman WA. - also see Breakaway resources.

Minara Resources (MRE) - (formerly Anaconda Nickel Limited) main revenue from the Murrin Murrin mine in Leonora WA. Has had a history of production delays.

Mincor Resources NL (MCR) - (formerly Africwest Gold NL) WA based producer of nickel and gold, primary income from the Kambalda Nickel area. Other Interests in Africa and Vanuatu.

Jubilee Mines (JBM) - Mining and exploration company focussed on Nickel production with multiple projects based in WA.

Metallica Minerals (MLM) - Diversified minerals company with projects mainly in QLD, exploration and production licences include nickel, coal, bauxite and gold.

Mithril Resources (MTH) - Exploration company that also has an interest in the Silver Swan North nickel project near Kalgoorlie in WA. Strategic alliance with BHP also includes Copper and Cobalt.

Nickel Australia (NKL) - Formed for the acquisition of nickel rights from Croesus Mining NL. The deal involves royalty payments and the possibility of returning leases if there are no discoveries.

Sally Malay Mining (SMY) - focussed on the development of the Sally Malay nickel-copper-cobalt project also with interest in the Copernicus nickel project in the East Kimberley.

Thundelarra Exploration Ltd (THX) - also listed in Canada, THX is an exploration company with Kimberley projects in WA focussed on Nickel, Uranium and base metals (incl Gold).

View resources (VRE) - (formerly SmartWORLD Corporation Limited) Mainly WA based Nickel and Gold propduction and exploration interests, purchased a project (Carnilya Hill / Zone 29) previously operated by a WMC and BHP joint venture.

Vulcan Resources (VCN) - based in WA It is focussed on exploration, development and mining of base and precious metal deposits in Finland.

Western Areas NL (WSA) - involved in the exploration for nickel, copper, platinum and gold, mainly in WA.