Vale are on the hunt for more nickel. They mention they are exploring their own tenements further but if they can easily acquire another 100kt to 300kt of easily mineable surface nickel for cheap, they will most definitely take it.
- Vale have CAD$1Bn to spend
- Prefer 20Kt surface nickel
- Expect 50 times increase in nickel demand in next 10 years
CZN prove up a nice shallow open pit nickel resource this company will be acquired rather than JV. Vale or whoever will want control of the resource and the upside.
https://www.thompsoncitizen.net/news/thompson/vale-manitoba-operations-head-believes-there-is-an-ore-body-equivalent-to-a-new-mine-near-thompson-1.24007049
Some really interesting points from their news"A proposed $1 billion investment in Vale’s Thompson mines in the next five years could generate nearly $8 billion in economic activity over the next 45 years"
"The key to convincing Vale management to invest more in Thompson mines is finding an area with 20,000 or more tonnes of nickel waiting to be mined."
"That said, Eyres believes that there is a possibility in the long-term future for previously mined areas that aren’t currently utilized – like Birchtree and Pipe Lake – to be brought back into production as demand created by production of electric vehicle batteries pushes nickel prices upwards. Currently, stainless steel production is the “bread and butter” of most nickel operations around the world, but the expected growth of the electric vehicle market could spur demand for 50 times as much nickel as is currently produced in the world by as early as 2030."
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