Nickel has finally succumbed to the base metals price rout.
SMM said that it and nickel miner PT Vale Indonesia are conducting a feasibility study to build a nickel processing project in Pomalaa, Southeast Sulawesi.
The focus on lithium-ion batteries seems to reflect supply and demand of lithium and cobalt but it would be very wrong not to include nickel.
A unit of the company, Black Mountain Metals LLP, will buy the Lanfranchi nickel project in the state of Western Australia for $15.1 million from Panoramic Resources.
Nickel, which recently hit its lowest since December, could climb as high as $16,000 a tonne by the end of 2018 and $18,000 a year later.
The original sale of the stake was disputed in a London court by aluminium producer Rusal, which owns a stake in Nornickel.
The world used almost 2.2 million tonnes of nickel last year. Around two thirds of that metal was absorbed by the stainless steel industry.
Expectations of a boom in demand for electric vehicles are leading investors and battery makers to stockpile nickel and helping to fuel a spike in global prices of the metal.
Privately held Dundas Mining is restarting its Avebury nickel mine in Tasmania early next year and Swiss trading house Transamine has secured the offtake.
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