Nickel mine Ramu will exceed its annual production capacity of 32,000mt nickel for the fourth consecutive year, said Conic Metals Corp. Conic is a base metal streaming and royalty company.
Conic noted that cash cost at Ramu including by-products is approximately $2.00/lb of nickel which is quite attractive given the high prices of nickel.
Nickel prices zoomed this year on good response from the electric vehicle (EV) sector and growing demand for nickel-rich lithium-ion batteries. The COVID-19 pandemic hit economies worldwide which led to disruptions in the nickel market but by the year-end, nickel prices bounced back to $8.00/lb, Conic said in their release.
Backed by strong demand from EV sector, the future of nickel demand looks bright. Macquarie reported that demand for EVs rose 119pc at the end of October compared to the prior year and global EV sales is up 27pc from 2019 levels. This bodes well for nickel producers of battery suitable material nickel which is produced at Ramu. Most global EV manufacturing companies are shifting to lithium-ion batteries for their upcoming EVs.
Looking forward into 2021, Conic anticipates that with a successful revival of economies from pandemic and returning to normality in global economies the demand for EV’s will continue to accelerate.
Conic Metals Corp. is a base metals company offering direct exposure to nickel and cobalt. Conic holds an 8.56pc joint-venture interest in Ramu nickel-cobalt Operation located in Papua New Guinea.