Brazilian Nickel Expansion

This caught my eye recently andheralds Brazildominance of the iron and nickel industry. Brazil and itsgeological continuation in West Africa haslong since been the sweetest source of iron ore available.  Now rich new lateritic nickel deposits arecoming on stream to complete the mix.

What is clear is that the scopeof the resource assures global needs for decades, if not centuries. Many otherresources will also contribute to the market but this is likely the price setter.

I have lived through a majorrestructuring of the global nickel industry over the past thirty years and ithas been awesome to watch. 

Brazil aims to become key nickel exporter

by Staff Writers

Rio De Janeiro(UPI) May 18, 2011 

http://www.terradaily.com/reports/Brazil_aims_to_become_key_nickel_exporter_999.html

Brazil has set its sights on making the most of its nickel deposits and isbeing helped by iron ore giant Vale in reaching higher targets to influence theglobal nickel markets.

Nickel prices remain strong despite slow recovery and abundant supplyfrom world leaders Russiaand Canada.As a steel component, nickel is seen in Brazil as an answer to thecountry's long-term steel-making plans as well as its potential as ahigh-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.

Brazil's targeted grand entry into the globalnickel market is timed with Vale's plans to maintain its iron ore processing andexport and diversify into other minerals and chemicals. The company announcedits intentions to boost its role in nickel market as it opened its first nickeloperation in Onca Puma, southeast of the northeastern Parastate.

Company officials said they rate the Onca Puma plant as one of thelargest ferronickel production plants in the world with annual nickel production setto exceed 53,000 tons. Once fully operational the plant will have an annualcapacity to produce 220,000 tons of ferronickel.

Vale said it spent $2.84 billion on getting the site up to speed, withmore than 9,500 employees -- 1,500 hired for the early phase.

Company executives hailed the plant as a major stride toward developingBrazil'soverall capacity for nickel processing and exports.

"Onca Puma is a milestone, not only because it is Vale's firstnickel production plant in Brazil, but also as it provides an example of thebuilding of sustainable relations with communities in the municipalities in thearea covered by the project," said Ricardo Carvalho, the company'sdirector of South Atlantic base metal operations.

The first container shipment of 1,078 tons of ferronickel left BrazilMay 11, company officials said. The shipment included 385 tons of nickel boundfor importers in the United States,Europe and Asia.

It has taken Vale more than five years to reach the current stage inits operations since it took over the project in 2005. Mine development workduring the intervening period has involved ore extraction operations in theOnce and Puma mountains, close to the location of the processing plant.

Nickel is resistant to oxidation and corrosion and is used to makealloys with many different industrial applications. More than 60 percent of themetal in production and export is used in stainless steel production.

Brazil aims to build its nickel market around traditional U.S.customers, China, Japanand EU nations.