Canada 'very unlikely' to join OPEC-like group for nickel -gov't source

Canada Nickel

17/11/2022 17:48

By Steve Scherer
       OTTAWA, Nov 17 (Reuters) - Canada has not committed to
establishing an OPEC-like organization for nickel-producing
countries with Indonesia and is "very unlikely" to participate
in any such group, a Canadian government source familiar with
the discussions said on Thursday.
    Indonesia proposed talks with Canada to establish the
organization in a meeting between Investment Minister Bahlil
Lahadalia and Canadian Trade Minister Mary Ng on the sidelines
of the G20 summit in Bali earlier this week. 
    A statement from Bahlil's office said Ng "welcomed the
proposal and the next step for both countries to explore such
collaboration opportunity."     
    "Minister Ng did not commit to exploring this collaboration
at this time," said the source who was not authorized to speak
on the record. "It is very unlikely we will be doing this
(joining an OPEC-like nickel group). Officials expressed high
levels of reservation about the Indonesian proposal."   
    A spokeswoman for the Indonesian investment ministry did not
respond to a request for comment made outside of office hours.
    Oil companies in many OPEC countries such as Saudi Arabia
are owned by the government while in countries such as Nigeria
contracts stipulate that government can compel private companies
to cut or raise production.
    A suggestion for a nickel OPEC had been met coolly by
Canadian producers, who said a global cartel would not benefit
them.
    "Canadian companies are integrated into the North American
supply chain and the Canadian resource base is a little bit
different," said Canada Nickel  CNC.V  Chief Executive Mark
Selby. "This proposal is more of a way for Indonesia to capture
more value in their own country."   
    Bahlil said on Wednesday that a group of nickel-producing
countries could make sure they get an optimal return from the
electric vehicle (EV) industry. 
    The two ministers did discuss working with "allies such as
Indonesia to develop sustainable and resilient global supply
chains," said the source.
    Indonesia and Canada are the world No. 1 and No. 6 nickel
producers, respectively.
 (Reporting by Steve Scherer in Ottawa; Additional reporting by
Bernadette Christina in Jakarta and Divya Rajagopal in Toronto
Editing by Matthew Lewis)
 ((steve.scherer@thomsonreuters.com; +1-647-480-7889;))