This caught my eye recently and
heralds Brazil
dominance of the iron and nickel industry.
Brazil and its
geological continuation in West Africa has
long since been the sweetest source of iron ore available. Now rich new lateritic nickel deposits are
coming on stream to complete the mix.
What is clear is that the scope
of the resource assures global needs for decades, if not centuries. Many other
resources will also contribute to the market but this is likely the price setter.
I have lived through a major
restructuring of the global nickel industry over the past thirty years and it
has been awesome to watch.
by Staff Writers
Brazil has set its sights on making the most of its nickel deposits and is being helped by iron ore giant Vale in reaching higher targets to influence the global nickel markets.
Nickel prices remain strong despite slow recovery and abundant supply
from world leaders Russia
and Canada .
As a steel component, nickel is seen in Brazil as an answer to the
country's long-term steel-making plans as well as its potential as a
high-earning export.
Vale is the world's second biggest nickel producer,
with operations in Canada , Indonesia and New Caledonia ,
as well as nickel refineries in Britain ,
China , Japan and Taiwan .
Company officials said they rate the Onca Puma plant as one of the
largest ferronickel production plants in the world with annual nickel production set
to exceed 53,000 tons. Once fully operational the plant will have an annual
capacity to produce 220,000 tons of ferronickel.
Vale said it spent $2.84 billion on getting the site up to speed, with
more than 9,500 employees -- 1,500 hired for the early phase.
Company executives hailed the plant as a major stride toward developing
Brazil 's
overall capacity for nickel processing and exports.
"Onca Puma is a milestone, not only because it is Vale's first
nickel production plant in Brazil, but also as it provides an example of the
building of sustainable relations with communities in the municipalities in the
area covered by the project," said Ricardo Carvalho, the company's
director of South Atlantic base metal operations.
The first container shipment of 1,078 tons of ferronickel left Brazil
May 11, company officials said. The shipment included 385 tons of nickel bound
for importers in the United States,
Europe and Asia .
It has taken Vale more than five years to reach the current stage in
its operations since it took over the project in 2005. Mine development work
during the intervening period has involved ore extraction operations in the
Once and Puma mountains, close to the location of the processing plant.
Nickel is resistant to oxidation and corrosion and is used to make
alloys with many different industrial applications. More than 60 percent of the
metal in production and export is used in stainless steel production.
Brazil aims to build its nickel market around traditional U.S.
customers, China, Japan
and EU nations.
No comments:
Post a Comment