Vale stated this week it might begin taking steps to shutter its Goro nickel operation in New Caledonia after ASX-listed New Century Sources walked away from the potential acquisition.
This follows Sumitomo suspending the Ambatovy HPAL mission in Madagascar in March, to stop the unfold of COVID-19. The Japanese firm is anticipating Ambatovy, the place it has a majority stake, to renew operations in its FY20 fourth quarter.
Giga Metals president Martin Vydra stated Vale’s information was not shocking and added HPAL was “exceedingly advanced and will be vulnerable to failure”.
“The continued development in lithium ion batteries depends on obtainable nickel within the type of intermediates, powders or briquettes of which 2020 manufacturing is predicted to whole 477,000t, in accordance with Wooden Mackenzie,” he stated.
“Goro and Ambatovy symbolize 71,000t of that whole in 2020, which demonstrates how tight the market might turn into.”
He stated 400,000t of nickel equated to about eight million electrical autos utilizing 50kg of nickel per EV.
“That is not too far sooner or later and when you think about that it takes anyplace from 5-10 years to convey a nickel operation corresponding to HPAL into manufacturing, the nickel obtainable for lithium ion batteries could possibly be in deficit earlier than OEMs and cathode producers realise,” he stated.
Giga Metals is advancing its Turnagain nickel project in British Columbia, which it desires to be the world’s first carbon impartial mine, producing 40,000t of nickel yearly.
It had C$860,759 in working capital at June 30.
It has since acquired about $575,000 from the train of warrants, a 2018 BC mining exploration tax credit score of $844,816 and about $20,500 in curiosity.
Giga Metals shares (TSXV: GIGA) have ranged from 13-81c over the previous yr and closed down 1.6% to 60c, capitalising it about $35 million (US$27 million).