2024-02-06 23:00:10
For several months, nickel prices have been at their lowest, and continue to fall at the start of 2024. A drop which is now having repercussions on several mining infrastructure projects, the future of which is threatened.
It was a real thunderclap at the London Metal Exchange, the world metals exchange. Last November, the nickel had gone down below $16,000 per ton, unheard of in two years. At the start of 2024, prices are struggling to rise again. Demand remains low, while supply is still very high. To the point that there are even surpluses, particularly in Indonesia, the world’s leading producer. A supply at half mast, which can be explained in particular by the substitution of nickel batteries by those with iron phosphates, metals that are much more abundant and even less expensive.
A nickel market in complete fog, which threatens the very future of the sector. In Australia, the fifth largest producer in the world, several projects are therefore at a standstill. First Quantum Minerals, Panoramic Resources and other major mining companies announce they are suspending production at some mines in the country. Some companies are even demanding public assistance in the form of tax credits.
What future for New Caledonian nickel?
Among the territories most vulnerable to the fall in nickel prices, there is also New Caledonia, with three factories in total. In August, a report from the General Inspectorate of Finance warned: without any developments in the sector, the closure of certain sites appears “ inevitable “. At issue: the cost of energy and labor which push up production prices. A disaster scenario in Caillou, where a quarter of private jobs are directly or indirectly linked to nickel production.
Like Australia, manufacturers are therefore demanding government assistance. If nationalization is ruled out at this stage, there is talk of a loan and emergency aid currently under discussion. The future of the sector should also be at the heart of a visit by Gérald Darmanin, the Minister of the Interior, who is due to visit New Caledonia during the month of February.
#Fall #nickel #prices #future #sector #suspense