Highlights:
- The demand for nickel is surging for use in electric vehicle batteries
- Global nickel consumption is likely to grow at a robust pace in the next couple of years
- As per the Resources and Energy Quarterly report, Australia’s earnings from nickel exports are projected to increase by 17% in 2022-23
Nickel is a silvery-white metal, highly resistant to heat and corrosion. As a result, this element finds applications in various sectors, such as alloys, protective coatings, catalysts, electric vehicles, batteries, and foundry products.
Nickel is found in laterite deposits and magmatic sulphide deposits. It is considered the fifth most abundant element on the earth and comprises approximately 0.007% of the earth’s crust. Pentlandite, chalcopyrite and nickel-bearing laterites are the most vital economic sources of nickel.
Australia, which holds around 22% of the world’s nickel resources, produces more than 200,000 tonnes of nickel every year, as per the December 2022 edition of the Resources and Energy Quarterly report.
According to the report, nickel exports from Australia are expected to hit nearly 180,000 tonnes by 2023-24. Due to current geopolitical situations and market demand, nickel prices surged recently, and export earnings from nickel are predicted to reach AU$5.1 billion in 2022-23 with a gain of 17% from 2021-22.
The Asia-Pacific region holds a majority in nickel consumption because of large stainless steel industries and battery manufacturing companies. The use of nickel is increasing in electric vehicles as innovations are coming up.
Some major nickel stocks listed on the ASX are BHP Group Ltd. (ASX:BHP), Rio Tinto Ltd. (ASX:RIO), Northern Star Resources Ltd. (ASX:NST), and Nickel Industries Ltd. (NIC).
Galileo Mining Ltd (ASX:GAL)
Mining and exploration company Galileo Mining is listed on the ASX and is focused on base metal discovery in Western Australia. Galileo Mining explores nickel-copper-cobalt deposits in the Fraser Range and palladium-nickel-copper-rhodium-platinum-gold deposits in the Norseman project. The Callisto discovery showed tenements near Norseman have high prospects for palladium-copper-nickel sulphide deposits. The company a joint venture with Creasy Group in the Fraser Range.
The JORC Mineral Resource Estimate for the Norseman project revealed near-surface laterite deposits have 122,000 tonnes of contained nickel and more than 26,000 tonnes of contained cobalt.
The latest diamond drill assays from the Callisto discovery have highlighted the highest grades of nickel and copper from disseminated sulphides to date with 1.58% nickel, 0.93% copper, and 3.32 g/t 3E over one metre in one of the holes.
Diamond drilling is currently targeting the eastern zone, where grades are increasing with depth, while RC drilling is targeting a shallow sulphide zone to the west.
Assay results pending for more than 20 RC and diamond drill holes are expected this month.
NICO Resources Ltd (ASX:NC1)
Australian company Nico Resources is focused on transforming the Australian nickel industry. Nico owns 100% interest in the Wingellina project, Western Australia, and the Claude Hills project, South Australia. The Wingellina deposit hosts a JORC Measured Resource Estimate of 182.6 Mt at 0.92% nickel and 0.07% cobalt. The Claude Hills deposits host a JORC Inferred Resource Estimate of 33.3 Mt at 0.81% nickel and 0.07% cobalt.
The pre-feasibility study at the Wingellina project has confirmed the site to be a globally significant Tier 1 asset with long-life, low-cost and high operating margins. The project has the potential to become one of Australia’s largest nickel-cobalt mines that can produce 40,000 tpa of contained nickel and 3,000 tpa of contained cobalt, says the company. The Definitive Feasibility Study is expected to commence in 2023.
Lunnon Metals Ltd (ASX:LM8)
Lunnon Metals has a nickel and gold project in Western Australia. The company is focused on the progress of its discovery program at the Warren channel, part of the previously operated Foster nickel mine at its Kambalda Nickel Project (KNP). The nickel mineralisation was successfully targeted adjacent to Hole WRN21DD_001. The results also indicate that a significant nickel-sulphide intercept is lying atop the footwall basalt covered with sediment.
Lunnon Metals updated the Mineral Resource Estimate for the Baker deposit, Kambalda Nickel Project recently. The new MRE stands at 929,000 tonnes at 3.3% nickel for 30,800 tonnes of contained nickel. The result increased MRE across the KNP project to 2.6 million tonnes with a 23% increase in contained nickel.