cquaritch on Canada Nickel ... the primary issue is national security, as China controls critical minerals through its influence over Indonesia's nickel industry. Indonesia produces nickel at a lower cost by allowing toxic mining waste to be dumped into the ocean and having next to no labor or safety standards, practices that Western countries and most of the world would never tolerate. If you believe Indonesia is a solution to the nickel industry your missing the bigger picture of Supply Chain Security.
US Government Critical Mineral Definition: "The Energy Act of 2020 defines a “CRITICAL MINERAL” as a non-fuel mineral or mineral material ESSENTIAL to the ECONOMIC or NATIONAL SECURITY of the U.S. and which has a SUPPLY CHAIN VULNERABLE to DISRUPTION"
- China controls 84% of the Indonesian nickel market
- China dominates 68-80% of nickel refining, including smelting
- China, through Indonesia, supplies around 50% of the annual nickel supply
- Starting in 2025, the US Inflation Reduction Act (IRA) requires critical minerals to be mined & processed in North America. Indonesian mined nickel or nickel refined in China, both designated as Foreign Entities of Concern (FEOC), is not eligible.
*** Credit to FAN for the information & sources - shared below for education/visuals ***
Stainless Steel is 80% of Nickel consumption. Numerous giga factories are planned in the US, largely due to the US framework & IRA. The government will not allow incentives for Indonesian nickel, and the stainless steel and EV factories will not gamble their future on nickel controlled by China, the biggest adversary to the US. The US Government is even trying to block a Japanese company from taking over US Steel.
Part of the CNC story is the proposed steel plant in Timmins, which would ensure a pure North American secure supply chain - it's a mine to giga factory model. Similarly, FAN's focus on awaruite also accomplishes a secure North American supply chain because awaruite does not require smelting. Indonesia's close ties with China and Russia (both designated as FEOC by the US) would ensure there would be no financial assistance for any critical minerals from those countries, making it unlikely for Indonesia to become a strategic ally to the United States.