Sudbury Star (excerpts from Nash interview)Sudbury Star (excerpts from Nash interview)
…”In the event of a labour dispute involving Mine Mill Local 598/CAW next month, he said Liberty Nickel could ship its concentrate to China for smelting. That's because its majority owner is the Jilin Jien Nickel Industry Company in Panshi City”….
Hint at trouble brewing?
…“Nash said the company's cost of production is close to $7 US per pound. Nickel was selling for $8.31 US per pound on the London Metal Exchange on Friday.”…
Ah, I think you better get that cost down to around 5 usd/lb if LBE has any chance of paying off the Chinese. Not likely!
….”Nash said it's hard to understand why nickel prices are in the $8-9 US range while inventories of the metal in the London Metal Exchange warehouses are at record levels.
"That is totally against the laws of economics, the law of supply and demand," he said. "You have 160,000 tonnes sitting in the LME warehouses, but there's 114,000 sitting in one warehouse in Rotterdam. Why is that metal just sitting there when the American steel producers are paying a premium up to 90 cents a pound to get nickel for their (stainless) steel?"...""
Your in the Nickel business, why doesn’t he know?