China Imported 34 Per Cent More Nickel Ore In 2009

According to customs statistics released last week China imported 16.575 million tonnes of nickel ore in 2009, up by 34% YoY compared with 2008.


The main sources into China were: Philippines 8,783,000 tonnes, up 2.18 times from 2008 and Indonesia: 7,237,000 tonnes. New Caledonia was the third largest source of nickel ore for China in 2008 but China bought no nickel from New Caledonia in 2009 as its supplier, SMSP, is exporting its production to a new joint venture with POSCO of South Korea to produce ferronickel at a new refinery in South Korea.


The average unit prices for 2009 were Philippine ore: at USD 31.7 per tonne CIF and Indonesian ore: at USD 44.8 per tonne CIF. On the basis of these unit prices on material base, nickel contained in these two ores has been presumed to be 1.5% to 1.75% for Philippine ore and 1.7% to 2% for Indonesian ore.

Big Fall In China Nickel Imports

According to customs statistics recently released, China imported 1,700,000 tonnes in material of nickel ores in the January to March quarter of 2009, down by 52% compared with 3,550,000 tonnes in the same quarter of 2008.

Also the unit price of nickel ores imported from the Philippines and Indonesia into China in the beginning of May and discharged at such main Chinese ports as Rizhao, Lianyungang and Lanshan were at CNY 260 to 280 per wet tonne of material on a CIF base.

For reference, the unit prices of nickel ores imported into China in May of 2008 were at CNY 880 per wet tonne CIF for Philippine ore and CNY 760 per wet tonne CIF for Indonesian ore a fall of two-thirds in comparison with those in the same month of 2008.

In order to fix the price of nickel ore containing 2% min of Ni to be imported into China, the country has adopted the formula linked with the LME nickel price which Japan has already applied, but the price of low grade nickel ore, containing less than 1.8% of Ni has been settled for each case through mutual negotiation.

According to customs statistics released in China, in January to March quarter of 2009, the country imported 726,000 tonnes in material of nickel ore from Philippines and 804,000 tonnes from Indonesia. China had nil of nickel ore to be imported from New Caledonia in January to March quarter of 2009.

Source: Steel Guru

SLN Signs New Caledonia Nickel Deal

New Caledonia’s nickel producer SLN and the government of the country's southern province have signed a partnership agreement which gives SLN access to a large nickel ore deposit.

The agreement is for a joint enterprise to exploit the Prony Ouest and Pernod nickel ore deposits and to create a smelter that would match the nickel output of SLN’s Noumea plant.

As part of the deal, SLN will invest more than US$100 million US dollars towards studies of the projects.

SLN’s director-general, Pierre Alla, says the allocation of potentially six million tonnes of nickel is significant for the company and allows it to plan for a very long future in New Caledonia.

As the Brazilian miner Vale Inco is about to complete its nickel plant at nearby Goro, Mr Alla says at some stage there may be talk to share some of the infrastructure.

Source: Radio New Zealand International

POSCO To Develop New Caledonia Nickel Mines

South Korean steelmaker POSCO said on Monday that it has received approval to develop five nickel mines in New Caledonia and export the ore to South Korea over the next 30 years.

The world's fourth-largest steelmaker said the deal approved by the government and parliament in Noumea would ensure a supply of 30,000 tons of nickel a year and raise cost competitiveness.

In 2006 POSCO spent $350 million to set up two joint ventures -- NMC, a nickel mine development company, and SNNC, a nickel processing company -- with SMSP, the largest exporter of nickel ore in the French-controlled island.

POSCO said SNNC's plant at the south coast port of Gwangyang would start commercial production in September.