I learnt that where Indonesian miners are (able) to covert class 2 to class 1 nickel it will cost about $18,000 a tonne. This leaves very little margin where you consider current nickel pricing. Which raises the question (if low margins) will promote new investment/ supply.
I also use the word (able) because it is not yet confirmed the technology is currently in place to successfully perform the conversion as I understand this is still in the works.
Indonesia also has a long way to go to produce nickel sustainably and so first world countries outside of China may be reluctant to buy directly from Indonesia based on their companies sustainably governance.
PAN Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
