Consultancy Benchmark Mineral Intelligence will launch green nickel prices on Thursday after some producers called for metals exchanges to start new contracts based on sustainability measures such as carbon emissions.
Prices for two types of nickel will be based on transactions by producers that meet Benchmark’s sustainability measures based on 79 ESG (environmental, social and governance) indicators.
“We hear a lot about decarbonization but sustainability is about so much more than carbon,” said Daniel Fletcher-Manuel, director of prices and data.
Benchmark will assess prices every two weeks for nickel metal and nickel sulphate, which is used in electric vehicle batteries.
Earlier this month, nickel miner Wyloo, owned by Australian mining magnate Andrew Forrest, said that if the London Metal Exchange (LME) doesn’t launch a green nickel contract, the industry will have to look for another trading venue.
Forrest told Australian media last month that the LME should classify its contracts into clean and dirty to give customers more choice, but the LME said a green nickel contract would not attract enough trading volumes.
The LME’s partner Metalshub is developing an index price that will reflect demand for low-carbon nickel.
Low prices have forced miners to shut operations due to a flood of Indonesian supply, most of which is produced using coal.
(By Eric Onstad; Editing by Kirsten Donovan)
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