Prospects Bullish at Global Nickel Demand as Nickel Prices Continue Uptrend
The great demand of steel for construction, automakers, and other industries, particularly steel alloyed with chrome and nickel, continues to remain high. As a result, this has created a big market for nickel consumption and consequently this surge in demand currently means nickel production commands good metal prices. Fortunately for the Philippines, there is a good resource of nickel ore spread over ultramafic rocks all over the country.
The Pujada Nickel Project is expected to help boost the government program in seizing the increasing rate of unemployment in the country through the alleviation of poverty. Hallmark Mining Corporation will coordinate with the Local Government, Mines and Geosciences Bureau, and other Government Agencies concerned, in the formulation of programs and projects to enhance progress, through the alternative livelihood that the project could offer. Nickel production will result in revitalizing the commerce as a collateral effect of the circulation of salaries, wages, and payment of goods and services at all levels, triggering sustainable livelihood. This project will result to an increase in income to the direct and indirect workers and the local government. A higher income undoubtedly means a higher living standard especially in communities in Davao Oriental where works are seasonal, as in agriculture. Consequently, the employment, sales, and taxes that the project brings to the community are its direct share towards addressing government’s program of alleviating the lack of opportunities in the countryside.
Nickel Demand in the World
There are about 3,000 nickel-containing alloys in everyday use. About 90% of all new nickel sold each year goes into alloys, two-thirds going into stainless steel. The dominant end-use or market for Nickel metal is mainly in the stainless steel industry due to the metals corrosion resistant properties. Global demand for nickel is driven by stainless steel production in China and India.
Figure 1 – Market for Nickel
China is the main driver of global demand for nickel growth over the past five years and will continue to be a major source of nickel consumption. Other nations with high nickel demand such India, Russia and Brazil are also seen to adding to overall demand growth as their rapidly increased industrialization leads to a corresponding rise in demand for stainless steel and alloys.
But when China, the primary driver of stainless steel demand, a major worldwide producer of nickel pig iron. and the world's major economy, loses 53% of its annual supply, serious reverberations will be felt. As is typical in commodities markets, an event of devastating consequence to some can be a tremendous opportunity for others. Given economic fundamentals, a drop in supply with no corresponding drop in demand will result in an increased nickel price, although this also means alternatives need to be sought to avoid continued escalation of nickel - and therefore - steel alloy prices.
Hallmark Mining and The Future of Nickel Production
The Philippines, being the 5th most mineralized country in the world, has the potential of attracting billions of dollars in capital investments that can jumpstart progress in remote areas of the country, this potential cannot be ignored. This is claim is further acknowledged by Environment and Natural Resources Undersecretary for Climate Change and Mining Concerns Analiza Teh.
The Pujada Nickel Mine Ni-Co laterites have formed on the southeastern rim of the Philippine archipelago and are believed to be an extension of the prominent Bicol-Eastern Mindanao Ophiolite Belt. At the prospect area, basement to the laterite is predominantly harzburgite with occasional dunite. Serpentinization of the harzburgite is common, especially near major fault zones. Gabbroic dikes up to five (5) meters wide and meta-sediments were reported to have been mapped in the area. This data bodes well for nickel production in Pujada.
Potential for the Pujada Nickel Project is very high; with an estimated ore reserve of over 25 years, it is poised to be a competitive and sustainable nickel production venture long into the future. Nickel is an important strategic metal, which is mainly used for stainless steel production. In the recent years, ferronickel has been used as a substitute for electrolytic nickel for alleviating the cost of stainless steel production. Rotary kiln-electric furnace (RKEF) smelting is currently the world-wide mainstreaming process for ferronickel production from nickeliferous laterite ore, despite its high power consumption.
Plans are already underway for the development of a Nickel Processing Plant in the Pujada Nickel Mine Area. This smelting facility will be able to process Nickel ore into billets that can supply downstream industries in the area that can convert the Nickel into products such as stainless steel. Byproducts from smelting will be used in hydroelectric power production, and excess production sold on the commercial market. This visionary project is seen to give back to the local communities by providing jobs, sustainability, a stronger economy, and improving these communities' living conditions and social status.