nickel up aud down, page-255

In regards to plough's earlier question - the same analytical experts out there who say that the long-term nickel price is $7/lb also admit that to meet the growing demand for China, India, etc, an additional 100,000t of Ni metal needs to come on line each and every year. That's two Ravensthorpes every year to meet demand.

And how much of that is going to come from large sulphide deposits? Not much. 73% of the worlds undeveloped nickel resources are laterites. Therefore that means HPAL ($2B capex), Heap Leach ($500M - $1B capex) or atmospheric leach ($750M).

Now not all of the proposed HPAL plants in the Phillipines, etc are going to get up, its just not ecnomic for some of these guys.

What does that mean? Either the long term price goes up to make it economic to bring new production on line, or new production doesn't make it to the market, thus reducing stocks against increasing longterm demand, which will increase long-term nickel price.