BHP eyes increasing stage one nickel sulphate output
Australia-UK resources firm BHP thinks its new nickel sulphate plant outside Perth has the potential to exceed its stage one design capacity of 100,000 t/yr.
It is in its final stages of commissioning, with nickel powder being diverted to the nickel sulphate plant and stored in overhead bins in preparation for starting operations in the July-September quarter, the group said at the annual Diggers and Dealers mining conference at Kalgoorlie.
BHP, which owns the integrated Nickel West mining and processing operation in Western Australia, said construction delays over the past two years have provided it with the opportunity to explore ideas to increase the dissolution rate and nickel sulphate production. Nickel West has developed a process in the main part of its nickel refinery at Kwinana to produce finer powder and has tested the impact of adding hydrogen peroxide to leach reactors.
"Together, these initiatives have demonstrated significant improvements in the production rate of the new nickel sulphate plant and provides us with confidence that the new facility has the potential to exceed 100,000 t/yr, remaining one of the largest in the world — and an Australian first," said Eddy Haegel, outgoing asset president of Nickel West.
Nickel sulphate demand and price premiums were low in 2020 mainly because of destocking. Nickel sulphate premiums have increased sharply in 2021 with growing demand from the battery material supply chain.
Argus assessed minimum 22pc nickel sulphate prices at $5,206/t on an ex-works China basis excluding value-added tax on 31 July, up from $3,473/t on 3 August 2020. Nickel metal was priced at $19,713/t on 2 August, up from $13,734/t on 3 August 2020.
Around 85pc of Nickel West's existing sales — mainly in the form of nickel powder and briquettes — is to the battery market but this is seen rising to around 90pc as the nickel sulphate plant ramps up.
Nickel West — which produced 89,000t nickel of nickel metal in the July 2020-June 2021 fiscal year and expects to produce 85,000-95,000t in 2021-22 — is increasing its resource base in Western Australia as it seeks to boost production of nickel sulphide from its mines.
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Australia's MinRes posts higher 1Q spodumene output
Australia's MinRes posts higher 1Q spodumene output
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EV demand slowdown cuts S Korea’s LGES' profit in 1Q
EV demand slowdown cuts S Korea’s LGES' profit in 1Q
Singapore, 25 April (Argus) — South Korea's top battery manufacturer LG Energy Solution (LGES) reported significant lower revenue and profit in January-March, because of lower battery metal prices and slower electric vehicle (EV) demand. LGES' revenue in January-March fell by 23pc on the quarter and 30pc on the year to 6.13 trillion won ($4.46bn), owing to lower demand for EV pouch cells and energy storage system (ESS), with "prolonged metal price impact" affecting its average selling price. The firm reported W157bn of operating profit in January-March, but would have reported an operating loss of W32bn if it did not receive almost W189bn in US Inflation Reduction Act (IRA) tax credits. But this was still a sharp drop from W633bn of operating profit for January-March 2023. The lower revenue and a demand slowdown in the EV market led to utilisation rate adjustments that weighed on its financial performance. The firm reaped a net profit of W212bn during the quarter, which was up by 12pc on the quarter but down by around 62pc on the year, likely significantly propped up by the US' IRA tax credits. LGES said it will continue to invest despite the difficult market environment, but will "adjust" the size of its capital expenditure and execution speed "as per priority". Battery project updates LGES and automaker General Motors in early April completed the first battery shipment out of their second Ultium battery cell factory in US' Tennessee. The plant's capacity is expected to gradually expand to 50 GWh/yr, said LGES. Construction progress at the firm's battery manufacturing complex in US' Arizona is also on track, said the firm. Ramped up capacity is expected to be 53 GWh/yr, which will comprise 36 GWh/yr of 46-series cylindrical battery for EVs and 17 GWh/yr of lithium-iron-phosphate battery for ESS. LGES' 10 GWh/yr Indonesian battery production joint venture with South Korean conglomerate Hyundai Motor has also started mass production. Its battery module production joint venture with automaker Stellantis in US' Ontario, which encountered a halt in construction in May last year, will start operations in the second half of 2024. The factory has a planned capacity of 45GWh/yr and was supposed to begin operations early this year. LGES earlier this year inked a second agreement with Australian firm Wesfarmers Chemicals, Energy and Fertilisers for lithium concentrate supply. The firm will continue building a raw materials supply chain within regions that have a free trade agreement with US, it said. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Barge delays at Algiers lock near New Orleans
Barge delays at Algiers lock near New Orleans
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Baltimore to temporarily open 4th shipping channel
Baltimore to temporarily open 4th shipping channel
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