Canada Nickel plans to raise $1 billion for nickel-processing plant

Canada Nickel

08/02/2024 16:47

By Divya Rajagopal
       TORONTO, Feb 8 (Reuters) - 
    Canada Nickel Co  CNC.V  on Thursday said it is looking to
raise $1 billion to build a nickel-processing plant, as it seeks
to position itself as an alternative supplier of the metal used
in car and electric battery vehicles.
  
    The processing plant in Ontario is expected to begin
production in 2027 and process 80,000 tonnes of nickel annually.
Nickel production is currently concentrated in Asia, and the
company hopes that the new plant will help increase supplies
from cleaner sources.
    The company is in discussions with the Canadian government,
the United States Department of Defense and other partners in
the battery manufacturing sector to raise the funding, CEO Mark
Selby told Reuters.
    The miner, which counts Samsung SDI  006400.KS  and Agnico
Eagle Mines  AEM.TO  as shareholders, is also building a nickel
mine in Ontario and hopes to integrate the battery supply chain
with the proposed processing plant, according to Selby.
        The company's stock rose 3.6% to C$1.42. The Toronto
Stock Exchange Venture-listed miner has a market value of C$194
million.
        The announcement by NetZero Metals, a unit of Canada
Nickel, comes as large global nickel producers 
    cut costs and reduce production
     after prices dropped 40% in the last year.
  
    But Selby expects demand for the metal to grow.   
    "The car companies and battery supply chain know that the
amount of nickel needed in North America is going to double and
triple over the next decade," Selby said, adding that what these
buyers want is responsibly produced, clean, green nickel in
North America.      
        

 (Reporting by Divya Rajagopal; Editing by Mark Porter)
 ((divya.rajagopal@thomsonreuters.com;))