All depends on the terms. If they approve the export of saprolite ore, don't take a bigger % of Goro with a free carry and just allow NCZ to implement their simplified model, it's a license to print money. Country's are also banning cobalt from the DRC as well. It will become the main source of cobalt for the EU.
NCZ will become twice as big as IGO. First thing they need to do is pull down the processing plant causing all the political tension/trouble. The North and the independence movement are trying to weaponise it to create fake future jobs.
If allowed to happen, it will actually create jobs in the South and generate revenue for the province. Not this continual loss making for the last 10 years. It will be one of those rare projects actually good for the people which isn't beneficial to the independence movement atm.
It's also the only way the SP will get to +$4 anytime soon or ever.
Those who express their opinion by reading no further than the headline will hate it. Oh it's been tried before. If Vale can't make it work, how can NCZ possibly do it blah blah blah. People with no vision or aptitude for the fine print. It may take 2 years to re-rate or 2 weeks with an off-take agreement with a major battery or car company producing EV's. Most people have no idea what is coming and how big or fast in the EV space.
Most of the big Nickel producers atm are the worlds biggest polluters which don't qualify to supply nickel to the EU and North America battery producers. BHP agreed in June to buy an Australian project that holds one of the country’s biggest untapped reserves of nickel from MMC Norilsk Nickel PJSC. They are the worlds biggest nickel producer and Russia's biggest polluter with 2 recent massive oil spills. No chance Aust would ever let them mine with their environmental record.
The only chance the nickel demand for EV's will be met is for one or 2 of the clean majors to step up. That it why they are all looking at Canada and Australia. Vale have Nickel assets in Canada and BHP here.
Vale are sick of the crap involved with NC and would probably have to meet some of their original promises which they would rather not if they continued. NCZ would have a clean slate if the BIG IF can be pulled off.
