Last year, Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk stated that he’d award a huge contract to any miner that could extract nickel in a way that was environmentally sustainable. Recently, Musk stated that his biggest concern was how to increase the supply of nickel, which is needed for electric vehicle (“EV”) batteries.
This is how Tesla came to be a technical adviser of a contentious nickel mine in New Caledonia. Last week, leaders in the French Pacific region decided to sell their stake in Vale to Prony Resources. Vale had been trying to find a buyer for the mine for more than a year, but the fact that New Caledonia is seeking independence from France complicated the sale.
The agreement was signed last week, with Reuters reporting that this gave 51% of the company’s stake to local interests and provincial authorities in New Caledonia. Trafigura, which is under the Prony consortium, will own a 19% stake in the company’s operations.
This move may help put a stop to violent protests over the organized sale of the Goro mine, which produces cobalt and nickel. These protests prompted Vale to close the site in December last year. This after the company decided to abandon the struggling nickel operation in 2019 because of an array of issues.
New Caledonia is one of the biggest producers of nickel in the world. However, protests conducted by groups calling for the country’s independence from France delayed the sale of the highly sough-after minerals.
Vale Nouvelle Calédonie is made up of the port of Prony, a processing plant and the Goro mine, which has the capacity to produce 60,000 tons of nickel annually in nickel oxide form. However, the mine has never performed to its full capacity because of operational commissioning issues and design flaws. In 2019, the Goro mine produced 23,400 tons of nickel, which is slightly above one-third of its yearly production capacity.
Over the last year, the price of nickel has grown more than 25% because of supply concerns as the demand for battery production surges. Concerns about a looming nickel deficit are also affecting the mineral’s demand, with data showing that deficit may begin as early as next year.
In the New Caledonian deal, Tesla was named as industrial and technical partner. The company revealed that it planned to venture into the mining business in a bid to secure resources needed for battery production. Tesla recently entered into a deal with Glencore to purchase cobalt and secured rights to mine lithium in Nevada.
Tesla deserves credit for taking the lead on matters of sustainable mineral extraction, but it isn’t the only company walking this road. For instance, Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) is a leading player in the uranium extraction sector, and this form of energy is one of the cleanest available since nearly all its waste can be stored and recycled.
NOTE TO INVESTORS: The latest news and updates relating to Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) are available in the company’s newsroom at http://ibn.fm/UUUU
About MiningNewsWire
MiningNewsWire (MNW) is a specialized communications platform focused on developments and opportunities in the global resources sector. The company provides (1) access to a network of wire services via InvestorWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, MNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, MNW brings its clients unparalleled visibility, recognition and brand awareness. MNW is where news, content and information converge.
To receive SMS text alerts from MiningNewsWire, text “BigHole” to 21000 (U.S. Mobile Phones Only)
For more information, please visit https://www.miningnewswire.com
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.miningnewswire.com/Disclaimer
MiningNewsWire
Los Angeles, California
www.miningnewswire.com
310.299.1717 Office
Editor@MiningNewsWire.com
MiningNewsWire is part of the InvestorBrandNetwork.
