This could be QPM's other Bradbury moment, where the geopolitical cards fall their way and allow the TECH to play a pivotal role in maintaining an economic future for NC & their biggest employment sector.
The IGF review into their nickel industry noted:
So the new French president should be well motivated to keep the NC Ni industry alive. The current unrest is not only decimating nickel revenue, but its other main industry tourism.
The IGF review also saw a drop in ore nickel content, regulatory & social difficulties, La Nina weather, and structurally high energy and labour costs as all factors in reducing competitiveness.The energy inputs contributed to 50% of production costs, with labour at 8-16%. I'm going to assume the labour largely consists of the expat population, as the review stated NC labour costs are 5x that of Indonesia's. Remember two of the island's three smelters produce Class II nickel for SS.
A recovery plan that sees PV farms/wind & batteries replacing coal/oil and a transition to class I nickel production (using the stockpiled overburden & the TECH process) via Kanak placements at TECH, and then a TECH stage II/III in NC would be a win/win for NC, France and Australia.
Perhaps an agreement on ore costs to offset NC worker placement/training benefits TECH OPEX, then setting up a TECH in NC (NCECH?) could further reduce OPEX with zero ore shipping required. The ore carriers travelling NC-Townsville could transport Edify Lansdown green hydrogen on the return journey, to help power the NCECH refinery.
Given the EU's increased tariffs on Chinese EVs this last week, and the stance of Le Pen, you'd think Macron, if he has to govern in cohabitation, may see the opportunity of TECH/NCECH as a way of both invigorating the NC Ni industry and quelling Kanak /National Rally dissatisfaction, and hence keeping NC a part of the Republique, and assisting EU carmakers being competitive. Cheap at half the likely cost of the ongoing unrest!
BTW, all is not peaches and cream in Indonesia. Perhaps increased nickel royalties coming to move the dial higher on dirty nickel production costs?
QPM Price at posting:
3.3¢ Sentiment: Buy Disclosure: Held
