Saudi’s mining minister sees no obstacles to dealmaking in Canada
Canada’s government introduced new rules in 2022 that added a layer of regulatory scrutiny to investments by foreign state-owned entities.
Nickel miner Wyloo, owned by Australian mining magnate Andrew Forrest, has agreed to sell its low-carbon metal on trading platform Metalshub, hoping to develop a price index for green metal, the two companies said on Tuesday.
In March, Wyloo said that if the London Metal Exchange (LME) failed to launch a green nickel contract, the industry would have to look for another trading venue.
The LME said it did not want to create another contract and said low carbon nickel, which it classifies as producing 20 tonnes of carbon dioxide or less per tonne of nickel, could be traded on its partner MetalsHub’s system.
A joint statement on Tuesday said Wyloo will use Metalshub to sell metal from its operations in Kambalda, Western Australia, where it owns two mines, once they restart, giving no date.
In January, Wyloo said it would put its Kambalda nickel operations on care and maintenance at the end of May in response to low nickel prices.
German-based Metalshub said it will provide buyers with information about where the nickel was produced, as well as its carbon footprint and ESG details, a statement said.
“The transparency would give nickel producers an opportunity to market their products with a premium,” said Metalshub managing director Sebastian Kreft.
Wyloo’s Kambalda operations have capacity to produce about 10,000 metric tons of high-grade nickel annually, according to Wyloo’s website.
Nickel from the world’s biggest nickel producer Indonesia is largely mined using coal, giving it a high carbon footprint, while some higher-cost miners with lower carbon have said they have closed operations due to low prices.
Wyloo’s owner Forrest is chairman of miner Fortescue Ltd.
(By Eric Onstad; Editing by David Evans)
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