Dumont Will Go First. Will Decar Be Second?
/wire say Royal Nickel in talks to finance Dumont
2018-01-16 09:31 ET - In the News
The Financial Post reports in its Tuesday edition that Royal Nickel is in talks with commodity traders, mine operators and financiers to help secure $1-billion to build the world's biggest nickel and cobalt project next year. A Reuters dispatch to the Post says that a global battery boom, driven by growing demand for electric cars, is pushing prices higher for such key ingredients as nickel and cobalt and encouraging miners to accelerate development plans. Conditions are right to build Dumont in Quebec, Royal Nickel said. With 3.15 million tonnes of nickel sulphide and 126,000 tonnes of cobalt, it is the largest undeveloped reserve of both metals in the world, according to S&P Global Market Intelligence. Royal Nickel is in talks with large Japanese trading houses, companies that offer "streaming" deals and miners interested in off-take arrangements to feed their smelters, chief executive officer Mark Selby told Reuters. Streaming deals offer miners upfront cash in exchange for future production. "We have a clear path to secure financial backing," said Mr. Selby. Lithium batteries contain cobalt and high-grade nickel. UBS estimates 15 million electric vehicles will be on the road by 2025.
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