24.07.2024
News
REUTERS: In search of the elusive green nickel premium
LONDON, July 23 (Reuters) - BHP Group's (BHP.AX) ambition to create a green nickel hub in Western Australia is on hold after the world's largest listed miner announced the entire division will go on care and maintenance later this year.
The company has invested $3 billion since 2020 to turn Nickel West into a major supplier of nickel sulphate for use in electric vehicle (EV) batteries.
A supply deal with Tesla Inc. (TSLA.O) was signed, opens new tab in 2021 for what BHP pronounced was "one of the most sustainable and lowest carbon emission" brands of nickel in the world.
Since then, low prices have trumped green credentials, a pattern seen in other battery metals, such as lithium and cobalt.
Just about every Western producer will tell you metal produced to higher environmental and social standards should command a premium.
The problem is right now it does not, and defining green is part of the challenge.
Read the rest of the article on Reuters here.
"One junior nickel miner, Talon Metals (TLO.TO) is proposing to do the same with production from its planned Tamarack mine in Minnesota. It has partnered with Circulor, already active in tracing material flows in the cobalt market, to ensure its nickel and carbon footprint can be tracked from mine to battery and eventual recycling."
Andy Home - Senior Metals Columnist, Reuters