NetworkNewsWire
4 years ago
As Indonesia Looks to Expand Nickel Production, Companies Involved in Process Stand to See Substantial Benefit
NetworkNewsWire Editorial Coverage: As the electric vehicle market sees impressive growth, the demand for nickel is also rising. Indonesia, which boasts 25% of the world’s nickel resources, is looking for ways to profit from the valuable base metal.
As Indonesia benefits from the growing market, so do the companies involved in the production of nickel, including Pacific Rim Cobalt Corp. (CSE: BOLT) (OTCQB: PCRCF) (XFRA: NXFE) (PCRCF Profile). Pacific Rim Cobalt has established a bold expansion plan following a successful exploration and development season in Indonesia last year. Other companies with interest in nickel production include BHP Group (NYSE: BHP), which is expanding its nickel business and has plans to ramp up sales for the fast-growing electric vehicle (EV) sector, and Vale S.A. (NYSE: VALE), which is planning to increase production of the metal by an estimated 70% in coming years, primarily through expansion in Indonesia. One of the world’s largest diversified natural resource companies, Glencore (OTC: GLNCY) is also deeply interested and invested in mining for battery metals. A major copper producer, Freeport-McMoRan Inc. (NYSE: FCX) is also looking to see additional revenue from the growing EV sector.
- Indonesia ideally located with ready access to markets in China and Japan.
- Nickel one of essential minerals needed to produce batteries for the growing electric vehicle market.
- Companies on the ground in Indonesia ideally positioned to profit from growing production, strong EV market.
To view an infographic of this editorial, click here.
Growth in EV Market Spurs Mining Boost for Indonesia
In many people’s minds, electric vehicles (EV) are associated with big cities in East Asia, North America and Western Europe. These are major markets where new vehicles are making their presence felt, particularly as environmentally conscious consumers seek to retain their personal mobility while protecting the planet from carbon emissions.
But the drive to put more EV on the roads is having a knock-on effect in other regions. Indonesia, a giant in the production of nickel, is seeing both its economy and its global status boosted by the need for nickel in EV batteries. This shift could help turn the country into an economic superpower, which may have significant consequences for companies working there.
“Mineral to Market” Strategy in Place
Among the companies developing Indonesia’s nickel supply is Pacific Rim Cobalt Corporation (CSE: BOLT) (OTCQB: PCRCF) (XFRA: NXFE), a Canada-based battery metals company with offices in Vancouver, Shanghai, Jakarta and Sentai, Indonesia.
Specializing in acquiring and developing production-grade battery metal projects, Pacific Rim is committed to providing these essential metals to companies producing EV batteries. PCRCF is committed to leveraging its flagship nickel-cobalt Cyclops project by employing a vertically integrated “mineral to market” strategy. The Cyclops operation is nestled at the edge of the Cyclops Mountains in the Papua Province, a region rich with nickel deposits, where past operations have established the presence of the mineral.
Keenly aware of growing interest in the industry, the Indonesian government is paying special attention to licensing rights given to extract minerals in the country. Recently the government updated the mining registration process, in part to encourage companies in this industry.
In light of the favorable government outlook and as a result of consistent efforts, Pacific Rim recently secured government approvals needed from the OMBUDSMAN of the Republic of Indonesia for the Cyclops project to move forward. The nickel and cobalt project has been found fully compliant with the updated mining registration process, meaning it is clear to progress.
Pacific Rim Cobalt CEO Ranjeet Sundher commented: “2019 was a pivotal year for us, and we’re pleased to carry this momentum into 2020. Obtaining approval from Indonesia’s OMBUDSMAN is an important step toward our goal of securing strategic partnerships and participating in Asia’s growing battery metals supply chain.”
Obtaining the approvals marks a significant accomplishment for Pacific Rim, an accomplishment made possible because of the connections the company has established. National, regional and local support has been found for the project, which will provide jobs in Papua Province in mining, transport and support services. With government approval in hand, company officials have now begun discussions with potential strategic partners and investors to further develop the operation.
Rich Resources, Direct Trade Routes Create Global Hub
Pacific Rim’s operation is well timed to tie in with plans of the Indonesian government. Indonesia aims to become a global hub in the EV industry supply chain. Not only does the country have rich sources of nickel, it also has direct nautical trade routes to China and Japan. These powerful neighboring countries represent major markets for the materials Indonesia is producing, thanks to Japan’s high-tech consumer economy and China’s powerful battery industry. Vehicle manufacturers in both countries are focused on becoming leaders in EV, and for that they’ll need battery-grade nickel.
Indonesian president Joko Widodo has established rules to bolster the EV industry in the country in an effort to make the most of this opportunity. Through a series of incentives, the government aims to make EV 20% of the country’s car production by 2025. This movement has attracted investment from major EV players. Operations such as the Cyclops project should appear ideally positioned to play a key role in making that happen.
To support its plan to become a world-leading player in the EV supply chain, Indonesia has stopped export of unprocessed nickel ore. The government has also recently approved environmental impact studies evaluation the completion of several factories designed to produce battery-grade nickel chemicals.
With the Indonesian government providing support for nickel production, and factories being established to process the chemicals, Indonesia won’t just be a source of nickel-bearing ore — it will become a major market for the base metal.
Ambitions of Country, Companies Key for Future
The Indonesian government’s ambitious plans for the country’s EV industry are matched by the ambition of the companies working in the region.
For Pacific Rim, this ambition is supported by the company’s remarkable exploration successes in 2019. Testing on its wholly owned site revealed substantial nickel and cobalt mineralization near the surface.
These conclusions are based on several successful operations in the second half of 2019. Excavation and sampling of test pits produced 530 kg of sample materials, which were sent to Canada for bench scale testing. Test results indicate 75 drill holes, 51 augur holes and 11 test pits were used to check mineral levels down to various depths. Combined with historic results from 856 drill holes and 26 test pits, these provide a detailed picture of the mineral profile at the Cyclops site.
With these results in hand, Pacific Corp. has identified ambitious milestones for development in 2020, including the completion of a pilot plant in Canada and a demonstration plant in Indonesia, which would produce battery-grade nickel and cobalt material to suit the growing EV market. The operations and success of these initial operations will be used to develop design criteria for a full commercial scale plant.
Demand for Nickel Growing
The demand for EV batteries translates to high demand for nickel; demand that doesn’t appear to be letting up any time soon. According to research by Deloitte, EV sales reached 2 million units globally in 2018 and should reach 4 million units in 2020, expanding to 21 million by 2030. At the same time, the cost of EV battery packs has been falling by 20% per year, making EV a more affordable option for consumers.
CRU Mobility and Energy Futures has predicted that the EV market will need 1.3 million tons of nickel per year by 2030, compared with 600,000 tons in 2018. This means that demand for Pacific Rim’s products could more than double in the next decade.
With Indonesia holding 25% of the world’s nickel reserves, the country — and companies with operating inside the country — lies at the nexus of these developments. Spending on new nickel processing plants in the country is expected to reach $20 billion by 2024, thanks to the government’s efforts to create a world-leading EV supply chain. Companies such as Pacific Rim, with an early position in the country’s nickel market, look to be ideally positioned to profit from this.
The EV Nickel Market
The nickel market is increasingly defined by the car manufacturers working in EV.
BHP Group (NYSE: BHP) announced plans to start production of nickel sulphate in the Q2 2020 as the company anticipates increasing sales of its nickel products to the battery industry (http://nnw.fm/6WzrB). In a presentation, company officials noted that BHP sold about 78% of its nickel production to the battery industry in the second half of the 2019 financial year, up from below 60% the year earlier. BHP currently produces around 75,000 tons of nickel metal at its Kwinana refinery on the outskirts of Perth.
The world’s largest producer of nickel, Vale S.A. (NYSE: VALE) is looking to boost its production of the base metal to some 360,000 tons a year, with much of the growth coming from projects planned for Indonesia (http://nnw.fm/z53H7). “Nickel is poised for dramatic change,” said Mark Travers, Vale’s interim executive director for base metals. Currently there is an oversupply of high-quality nickel, but experts anticipate that the market will tighten in coming years as electric vehicle sales climb, observed Travers, who also noted that Vale has two nickel projects on the drawing board in Indonesia being developed with joint venture partners.
In addition to mining nickel, Glencore PLC (OTC: GLNCY) is one of the world’s largest recyclers and processors of nickel-bearing products such as batteries, extracting the minerals from discarded goods and finding ways to reuse them (http://nnw.fm/gCxL7). A major global producer of platinum-group and base metals, Glencore’s nickel supply is produced primarily from locations in Australia, Canada and Europe.
Nickel isn’t the only metal needed for electric vehicles. Copper producer Freeport-McMoRan Inc. (NYSE: FCX) could see a $4 billion increase over the next five years (http://nnw.fm/5RKOy), with the EV market driving a decent chunk of that growth. FCX has a copper mine in Indonesia, which is currently undergoing a transition from open pit to underground. That transition is slated to be complete in 2021, and increased production from that mine, combined with continuing production growth at FCX’s North and South American sites point to copper shipments increasing from 3.8 billion pounds in 2018 to 4.8 billion pounds by 2023.
With EV production anticipated to grow dramatically in the coming year, mining for nickel and other metals essential for that growth takes on added value and importance. Companies involved in that mining appear certain to benefit.
For more information on Pacific Rim Cobalt Corp., visit Pacific Rim Cobalt Corp. (CSE:BOLT) (OTCQB:PCRCF) (XFRA:NXFE)
About NetworkNewsWire
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DISCLAIMER: NetworkNewsWire (NNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by NNW are solely those of NNW. Readers of this Article and content agree that they cannot and will not seek to hold liable NNW for any investment decisions by their readers or subscribers. NNW is a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, NNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.
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NetworkNewsWire
4 years ago
Indonesia Consolidates Nickel Production to Feed Growing EV Battery Market
NetworkNewsWire Editorial Coverage: Demand for electric vehicle batteries is pushing up production of nickel, especially in Indonesia, where the government is moving to benefit from its natural resources.
One of the companies on the leading edge of this upward momentum is Pacific Rim Cobalt Corp. (CSE: BOLT) (OTCQB: PCRCF) (XFRA: NXFE) (PCRCF Profile), which is setting out a bold expansion plan following a successful exploration and development season in Indonesia last year. Other companies with interest in nickel production include Honda Motor Company Ltd. (NYSE: HMC) (OTC: HNDAF), which will be looking for more nickel as it increases its EV range. Tesla Inc. (NASDAQ: TSLA) also continues to push the boundary for EV and has seen its stock rise as the market grows. Toyota Motor Corporation (NYSE: TM) (OTC: TOYOF) is moving into EV, with millions of alternative fuel vehicles sold in the United States. Panasonic Corp ADR (OTC: PCRFY) is working with several of these companies to keep up the EV battery supply.
- Indonesia has 25% of the world’s nickel resources, ready access to markets in China and Japan.
- Nickel is among essential minerals needed to produce batteries for the growing electric vehicle market.
- The Indonesian government has established new regulations to support this growing industry.
To view an infographic of this editorial, click here.
Electric Vehicles Spur Mining Boost for Indonesia
In many people’s minds, electric vehicles (EV) are associated with big cities in East Asia, North America and Western Europe. These are major markets where new vehicles are making their presence felt, particularly as environmentally conscious consumers seek to retain their personal mobility while protecting the planet from carbon emissions.
But the drive to put more EV on the roads is having a knock-on effect in other regions. Indonesia, a giant in the production of nickel, is seeing both its economy and its global status boosted by the need for nickel in EV batteries. This shift could help turn the country into an economic superpower, which may have significant consequences for companies working there.
Expanding Indonesian Nickel Production
Among the companies developing Indonesia’s nickel supply is Pacific Rim Cobalt Corporation (CSE: BOLT) (OTCQB: PCRCF) (XFRA: NXFE), a Canada-based battery metals company with offices in Vancouver, Shanghai, Jakarta and Sentai, Indonesia.
Pacific Rim specializes in acquiring and developing production-grade battery metal projects and is committed to providing these critical metals to companies producing EV batteries. The company has been working towards leveraging its flagship nickel-cobalt Cyclops project by employing a vertically integrated “mineral to market” strategy. Based in Papua Province, nestled at the edge of the Cyclops Mountains, this operation is based in a region rich with nickel deposits, where past operations have confirmed the presence of the mineral.
The Indonesian government, which controls licensing to extract minerals in the country, is aware of the growing interest in the industry. Recently the government updated the mining registration process, in part to encourage companies in this industry.
In light of the favorable government outlook and as a result of its its ongoing efforts, Pacific Rim recently secured government approvals needed from the OMBUDSMAN of the Republic of Indonesia for the Cyclops project to move forward. The nickel and cobalt project has been found fully compliant with the updated mining registration process, meaning it is clear to progress.
Pacific Rim Cobalt CEO Ranjeet Sundher commented: “2019 was a pivotal year for us, and we’re pleased to carry this momentum into 2020. Obtaining approval from Indonesia’s OMBUDSMAN is an important step toward our goal of securing strategic partnerships and participating in Asia’s growing battery metals supply chain.”
This milestone marker for Pacific Rim has been possible thanks to the support and connections the company has established. National, regional and local support has been found for the project, which will provide jobs in Papua Province in mining, transport and support services. With government approval in hand, company officials have now begun discussions with potential strategic partners and investors to further develop the operation.
A Global Hub for Electric Vehicle Production
Pacific Rim’s operation is well timed to tie in with plans of the Indonesian government.
Indonesia aims to become a global hub in the EV industry supply chain. Not only does the country have rich sources of nickel, it also has direct nautical trade routes to China and Japan. These powerful neighboring countries represent major markets for the materials Indonesia is producing, thanks to Japan’s high-tech consumer economy and China’s powerful battery industry. Vehicle manufacturers in both countries are focused on becoming leaders in EV, and for that they’ll need battery-grade nickel.
To make the most of this opportunity, Indonesian president Joko Widodo has established rules to bolster the EV industry in the country. Through a series of incentives, the government aims to make EV 20% of its car production by 2025. This movement has attracted investment from major EV players. Operations such as the Cyclops project should play a critical role in making that happen.
To support its plan to become a world-leading player in the EV supply chain, Indonesia has stopped export of unprocessed nickel ore. The government has also recently approved environmental impact studies for the completion of several factories designed to produce battery-grade nickel chemicals.
With the Indonesian government providing support for nickel production, and factories being established to process the chemicals, Indonesia won’t just be a source of nickel-bearing ore — it will become a major market for the base metal.
Ambitious Plans for Nickel
The Indonesian government’s ambitious plans for the country’s EV industry are matched by the ambition of the companies working in the region.
For Pacific Rim, this ambition is backed by the company’s impressive exploration successes in 2019. Testing on its wholly owned site revealed significant nickel and cobalt mineralization near the surface.
These conclusions are based on several successful operations in the second half of 2019. Excavation and sampling of test pits produced 530 kg of sample materials, which were sent to Canada for bench scale testing. Test results indicate 75 drill holes, 51 augur holes and 11 test pits were used to check mineral levels down to various depths. Combined with historic results from 856 drill holes and 26 test pits, these provide a detailed picture of the mineral profile at the Cyclops site.
With these results in hand, Pacific Corp. has identified ambitious milestones for development in 2020, including the completion of a pilot plant in Canada and a demonstration plant in Indonesia, which would produce battery-grade nickel and cobalt material to suit the growing EV market. The operations and success of these initial operations will be used to develop design criteria for a full commercial scale plant.
A Growing Market
The demand for EV batteries means that demand for nickel is high and looks set to stay that way. According to research by Deloitte, EV sales reached 2 million units globally in 2018 and should reach 4 million units in 2020, expanding to 21 million by 2030. At the same time, the cost of EV battery packs has been falling by 20% per year, making EV a more affordable option for consumers.
CRU Mobility and Energy Futures has predicted that the EV market will need 1.3 million tons of nickel per year by 2030, compared with 600,000 tons in 2018. This means that demand for Pacific Rim’s products could more than double in the next decade.
With Indonesia holding 25% of the world’s nickel reserves, the country — and companies with operating inside the country — lies at the nexus of these developments. Spending on new nickel processing plants in the country is expected to reach $20 billion by 2024, thanks to the government’s efforts to create a world-leading EV supply chain. Companies such as Pacific Rim, with an early position in the country’s nickel market, look to be ideally positioned to profit from this.
The EV Nickel Market
The nickel market is increasingly defined by the car manufacturers working in EV.
Honda Motor Company Ltd. (NYSE: HMC) (OTC: HNDAF) is making big moves with EV and hybrid vehicles such as the new Fit. The company is increasing its general levels of car production, with a record-breaking year in 2019 for production in China. Critically, Honda is looking beyond the consumer market in its EV work, with a new research agreement with Isuzu to work on heavy-duty trucks driven by electric fuel cells. This would expand the need for EV batteries.
Tesla Inc. (NASDAQ: TSLA) is the name most associated with EV. The company has played a leading role in pushing the industry forward as well as in raising its public profile. The company’s stated mission is to accelerate the world’s transition to sustainable energy, which means moving transport faster over to EV. Through intense R&D work, the company has pushed its cars to ever greater mileage, while also developing other battery-based projects, such as Megapack utility-scale energy storage. The company’s recent stock-price growth reflects increasing investor confidence in the EV sector.
Like other vehicle companies, Toyota Motor Corporation (NYSE: TM) (OTC: TOYOF) is moving from traditional engines towards EV. The company has sold more than three million alternative fuel vehicles in the United States alone and is now backing its electric vehicles with an extended-battery warranty. The company also offers some of the most innovative EV on the market, with its Mirai the first zero-emissions vehicle with a range of more than 300 miles.
Panasonic Corp ADR (OTC: PCRFY) has entered the vehicle market by providing batteries for car manufacturers. In addition to its partnership with Tesla, Panasonic has established a joint venture with Toyota to produce EV batteries in China and Japan. The latter project is expected to increase Toyota’s battery production capacity 50 times over, bringing down the cost of individual batteries and significantly increasing the demand for components such as nickel.
With EV production going through a period of dramatic growth, nickel mining looks to be set for dramatic expansion. Nowhere will this be more noticeable than in the government-supported industry of Indonesia.
For more information on Pacific Rim Cobalt Corp., visit Pacific Rim Cobalt Corp. (CSE:BOLT) (OTCQB:PCRCF) (XFRA:NXFE)
About NetworkNewsWire
NetworkNewsWire (“NNW”) is a financial news and content distribution company, one of 40+ brands within the InvestorBrandNetwork (“IBN”), that provides: (1) access to a network of wire solutions via NetworkWire 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 solutions to ensure maximum impact; (4) social media distribution via IBN millions of social media followers; and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience comprising investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.
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NetworkNewsWire (NNW)
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DISCLAIMER: NetworkNewsWire (NNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by NNW are solely those of NNW. Readers of this Article and content agree that they cannot and will not seek to hold liable NNW for any investment decisions by their readers or subscribers. NNW is a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, NNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.
NNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and NNW undertakes no obligation to update such statements.
NetworkNewsWire
5 years ago
Increasing Demand for Batteries Strengthens Worldwide Nickel Market
NetworkNewsWire Editorial Coverage: Growth in demand for batteries is pushing up nickel production around the world.
- Nickel is an essential component in batteries, including those for cars and phones.
- Demand for metals is growing, especially in China, a major battery manufacturer.
- Indonesia is the world’s largest nickel producer.
- The country is working to expand its manufacturing sector.
To view an infographic of this editorial, click here.
Pacific Rim Cobalt Corporation (CSE: BOLT) (OTCQB: PCRCF) (PCRCF Profile) is making the most of Indonesian nickel through an aggressive exploration and development program there. Ivanhoe Mines Ltd. (TSX: IVN) (OTCQX: IVPAF) has announced mine development is underway at its platinum-group metals, nickel, copper and gold Platreef Project in South Africa. BHP Group (NYSE: BHP), the world’s biggest mining company, is holding on to its Western Australia-based Nickel West operations, based on a positive battery market forecast. Glencore (OTC: GLNCY) mines nickel and produces byproduct metals as a result of that production. One of the major drivers behind the rising demand for batteries is car production by companies such as Volkswagen AG (OTC: VWAGY), which is building two additional plants in China to produce a total of 600,000 vehicles on its dedicated battery-car platform.
Building Better Batteries
The past two decades has seen the demand for battery materials surge upward. A host of electronic gadget and vehicles — everything mobile phones, laptops and hybrid cars — are spreading around the world. And each one relies on batteries for power, causing a spike in demand for the minerals used in these batteries.
This flood of electronic devices has created an opportunity for countries with rich nickel deposits, including Indonesia. By reforming laws and opening up the industry to foreign investors, these countries are seeing a boost to their economies and enjoying a growing influence on the global stage. The growing demand also creates promising potential for savvy companies that are willing to seize the opportunity to mine the world’s mineral wealth.
The Need for Nickel
For mineral exploration companies such as Pacific Rim Cobalt Corporation (CSE:BOLT) (OTCQB:PCRCF), there’s never been a better time to focus on nickel. Two trends are buoying up demand for battery minerals: green energy and high-tech gadgetry. These two trends will undoubtedly only increase, ensuring a shiny future for nickel companies.
People around the world today live increasingly connected lives, thanks to the proliferation of electronic gadgets. From smartphones to laptops to watches that track fitness, first-world consumers and the rising middle class of the rest of the world are using portable technology around the clock. The portability of these powerful devices is made possible because of their rechargeable batteries, which rely upon elements such as nickel to work.
At the same time, the push for environmentally friendly living is also boosting the need for batteries. Electric and hybrid cars are fueled by powerful batteries, batteries that are essential for self-driving and driver-assistance technology. National energy production networks, which increasingly use renewable energy to reduce pollution, also depend on battery-power storage solutions to see them through the ebb and flow of solar and wind power. Mining companies such as Pacific Rim Cobalt are emerging as a vital component in the creation of a cleaner environment.
For Pacific Rim Cobalt, this means continued development of projects with the end goal of eventually producing cathode materials such as nickel to meet growing demand. Though tensions over President Donald Trump’s trade wars have softened metal prices in the short term, longer-term needs are essentially immune to presidential policies. Across Asia in particular, demand for battery materials keeps rising, and the market’s long-term strength seems assured.
Indonesia: A Nickel Powerhouse
To make the most of this market, Pacific Rim Cobalt has been building its operations in Indonesia, the largest nickel-producing nation in the world. With cobalt being a byproduct of nickel production, Indonesia remains in the running to potentially become the largest source of this critical battery mineral outside of Africa.
Located in northern Indonesia, Pacific Rim’s Cyclops Project is the company’s current focus on nickel operations. The project is in its early stages, with 20 step-out holes already drilled to gather information about the mineral resources in the region. The company has just announced (June 6) the commencement of Phase 2 drilling at Cyclops with a goal of completing up to an additional 50 holes. Combined with historical estimates, this information will allow the company to establish a maiden compliant (NI 43-101) resource on the project and determine how best to go about extracting those resources. Up to this point, drilling has confirmed elevated nickel and cobalt values, demonstrating a potentially highly profitable mining site.
The Cyclops site was carefully chosen from among available options in Indonesia. “The Cyclops Project was acquired following extensive due diligence on over 40 projects across Indonesia,” said Pacific Rim CEO Ranjeet Sundher. “We expect the near-surface nature of cobalt and nickel mineralization at the Cyclops Project will lend itself well to low-cost, logistically straightforward drilling. We anticipate the opportunity to undertake a resource calculation study, as well as ongoing metallurgy and process option testing, will present itself in the near future."
The abundance of mineral deposits isn't the only thing that makes Indonesia and, in particular, its north coast an attractive place for nickel mining. It’s also location. Close to China, Indonesia is in an ideal position to supply its neighboring country’s huge battery-production market. Chinese batteries play an essential part both in their home country’s embrace of modern technology and in exports to the rest of the world. Chinese companies are becoming leaders and innovators in telecoms and electric cars, making this an important market for nickel producers.
Good transportation links are essential to making the most of mineral extraction. Whether it’s the solid road connections around Pacific Rim Cobalt’s project or the maritime trade connections between Indonesia and China, these dynamic elements ensure that Indonesia — and the companies working within the country — can make the most of its mineral resources.
Opening Up Markets
Indonesia, however, has set its sights on becoming more than just a resource base. The country’s Industry Minister, Airlangga Hartarto, has identified a bold agenda. The government’s plan is to build Indonesia into a regional manufacturing powerhouse, turning its own raw resources into consumer goods. This strategic move could create even more opportunities for companies already in the country, such as Pacific Rim Cobalt.
The government’s goal is not just a grand statement of intent. Plans are afoot to revise labor laws and open up various parts of the economy to foreign involvement. These moves are expected to make the country even more attractive to investors, whose money can drive the development of the manufacturing base.
The abundance of nickel ore will be one of the draws for these investors. This rich resource will remain a unique selling point for Indonesia, as manufacturing within the country appears certain to reduce transport costs associated with acquiring the mineral and allow greater efficiencies in the end-to-end battery production process.
With ongoing demand from China and the development of strong internal markets, nickel companies working in Indonesia almost certainly will see demand for their products continue to rise. By tapping into buried deposits, both Indonesia and the companies operating in the country appear certain to profit. This promising future is what companies such as Pacific Rim Cobalt are banking on.
Pushing Up Nickel Production
Reports from Ivanhoe Mines Ltd.’s (TSX: IVN) (OTCQX: IVPAF) Platreef project appear promising. The project’s mining team delivered the first high-grade mineralization from underground mine development to surface stockpiles for metallurgical sampling three months ago. A total of fifty grab samples yielded an average grab sample grade of 6.35 grams per tonne platinum, palladium and rhodium plus gold, as well as significant quantities of nickel and copper.
Glencore (OTC: GLNCY), one of the world’s largest diversified natural resources companies, has invested heavily in mining for battery metals, including nickel. Producers of some of the world’s purest nickel, Glencore relies on assets from Australia, Canada and Europe to produce its supply of nickel. As a byproduct of its nickel production, the company also produces byproduct metals such as cobalt and copper.
The decision by BHP Group (NYSE: BHP) to keep Nickel West was announced by BHP CEO Andrew Mackenzie during a recent mining conference. “Nickel West, which we will now retain in the portfolio, offers high-return potential as a future growth option, linked to the expected growth in battery markets and the relative scarcity of quality nickel sulphide supply,” he said. Nickel West is a fully integrated mine-to-market nickel business with all operations (mines, concentrators, a smelter and a refinery) located in Western Australia.
The hunt for battery metals is made more urgent by the work of car manufacturers such as Volkswagen AG (OTC: VWAGY), which began producing cars in China in 1984; the company has become a significant presence in the country since then. Opening two more plants in the country will likely place the company in a strong position in the growing e-vehicle market. VW plans to produce some 70 battery-powered models across its 12 auto brands by 2028 and make 22 million electric cars over the next decade. In addition, the Volkwagen Group opened four new plants in China last year. This growth should boost China’s burgeoning battery industry along with the country’s demand for Indonesian nickel.
As battery demand continues to grow, so will the world’s nickel industry. And the companies involved in that industry appear certain to benefit.
For more information on Pacific Rim Cobalt Corp., visit Pacific Rim Cobalt Corp. (OTCQB: PCRCF) (CSE: BOLT)
About NetworkNewsWire
NetworkNewsWire (NNW) is a financial news and content distribution company that provides (1) access to a network of wire services via NetworkWire 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, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with NNW Prime. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW 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, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.
For more information, please visit https://www.NetworkNewsWire.com
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
DISCLAIMER: NetworkNewsWire (NNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by NNW are solely those of NNW. Readers of this Article and content agree that they cannot and will not seek to hold liable NNW for any investment decisions by their readers or subscribers. NNW is a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, NNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.
NNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and NNW undertakes no obligation to update such statements.
NetworkNewsWire
5 years ago
Swelling Battery Demand Keeps Indonesian Nickel Sector Strong
NetworkNewsWire Editorial Coverage: Growth in demand for batteries is pushing up nickel production and economic change in Indonesia.
- Nickel is an essential component in batteries, including those for cars and phones.
- Demand for metals is growing, most importantly in China, a major battery manufacturer.
- Indonesia is the world’s largest nickel producer.
- The country is working to expand its manufacturing sector, attracting investment from multinational industry and mining giants.
To view an infographic of this editorial, click here.
Pacific Rim Cobalt Corporation (OTCQB: PCRCF) (CSE: BOLT) (PCRCF Profile) is making the most of Indonesian nickel through an aggressive exploration and development program there. VALE S.A. (NYSE: VALE), the world’s leading nickel producer, is also invested in Indonesia. Lundin Mining Corporation (TSX: LUN) (OTC: LUNMF), another leading nickel producer, relies on sources in America and Europe. Cobalt 27 Capital Corporation (TSX.V: KBLT) (OTCQX: CBLLF) has recently acquired access to a significant Pacific nickel resource in Papua New Guinea. One of the major drivers behind this demand for batteries is car production by companies such as Honda Motor Company Ltd. (NYSE: HMC), which is moving more of its work to China.
Building Better Batteries
The past twenty years has seen the demand for battery materials rise like never before. Mobile phones, laptops and hybrid cars are spreading around the world, along with a host of other electronic gadgets. All rely on batteries for their power, causing a spike in demand for the minerals used in these batteries.
This upward movement has created an opportunity for countries with rich nickel deposits, such as Indonesia. By reforming laws and opening up the sector to foreign investors, these countries are seeing a boost to their economies and growing influence on the global stage. The growing demand also creates promising potential for savvy companies who are willing to seize the opportunity to mine Indonesia’s mineral wealth.
The Need for Nickel
For mineral exploration companies such as Pacific Rim Cobalt Corporation (OTCQB: PCRCF) (CSE: BOLT), there’s never been a better time to work on nickel. Two trends are buoying up demand for battery minerals — green energy and high-tech gadgetry. Between them, these two trends are ensuring that the future is busy for nickel companies.
People around the world today live increasingly connected lives, thanks to the proliferation of electronic gadgets. From smartphones to laptops to watches that track fitness, first-world consumers and the rising middle class of the rest of the world are using portable technology around the clock. The portability of these powerful devices is made possible because of their rechargeable batteries, which rely upon elements such as nickel to work.
At the same time, the push for greener living is also giving batteries a boost. Electric and hybrid cars use powerful batteries in place of petrol or diesel — batteries that are essential for self-driving and driver assistance technology. National energy production networks, which increasingly use renewable energy to reduce pollution, need power storage solutions to see them through the ebb and flow of solar and wind power. Mining companies such as Pacific Rim Cobalt are emerging as vital parts in the creation of a cleaner environment.
For Pacific Rim Cobalt, this means continued development of the project with the goal of eventually producing cathode materials such as nickel to meet growing demand. Though tensions over President Donald Trump’s trade wars have softened metal prices in the short term, longer-term needs are essentially immune to presidential policies. Across Asia in particular, demand for battery materials keeps rising, and the market’s long-term strength seems assured.
Indonesia: A Nickel Powerhouse
To make the most of this market, Pacific Rim Cobalt has been operating in Indonesia, the largest nickel-producing nation in the world. With cobalt being a byproduct of nickel production, Indonesia remains in the running to potentially become the largest source of this critical battery mineral outside of Africa.
The Cyclops Project, located in northern Indonesia, is the current focus of Pacific Rim Cobalt’s nickel operations. The project is in its early stages, with 20 step-out holes already drilled to gather information about the mineral resources in the region. The company has just announced (June 6) the commencement of Phase 2 drilling at Cyclops with a goal of completing up to an additional 50 holes. Combined with historical estimates, this information will allow the company to establish a maiden compliant (NI 43-101) resource on the project and determine how best to go about extracting those resources. Up to this point, drilling has confirmed elevated nickel and cobalt values, demonstrating a potentially highly profitable mining site.
The Cyclops site was carefully chosen from among available options in Indonesia. “The Cyclops Project was acquired following extensive due diligence on over 40 projects across Indonesia,” said Pacific Rim CEO Ranjeet Sundher. “We expect the near-surface nature of cobalt and nickel mineralization at the Cyclops Project will lend itself well to low-cost, logistically straightforward drilling. We anticipate the opportunity to undertake a resource calculation study, as well as ongoing metallurgy and process option testing, will present itself in the near future."
The abundance of mineral deposits isn't the only thing that makes Indonesia and, in particular, its north coast an attractive place for nickel mining. It’s also location. Close to China, Indonesia is in an ideal position to supply its neighboring country’s huge battery-production market. Chinese batteries play an essential part both in their home country’s embrace of modern technology and in exports to the rest of the world. Chinese companies are becoming leaders and innovators in telecoms and electric cars, making this an important market for nickel producers.
Good transport links are key to making the most of mineral extraction. Whether it’s the solid road connections around Pacific Rim Cobalt’s project or the maritime trade connections between Indonesia and China, these dynamic elements ensure that Indonesia — and the companies working within the country — can make the most of its mineral resources.
Opening Up Markets
Indonesia, however, has set its sights on becoming more than just a resource base. The country’s Industry Minister, Airlangga Hartarto, has identified a bold agenda. The government’s plan is to build Indonesia into a regional manufacturing powerhouse, turning its own raw resources into consumer goods. This strategic move could create even more opportunities for companies already in the country, such as Pacific Rim Cobalt.
The government’s goal is not just a grand statement of intent. Plans are afoot to revise labor laws and open up various parts of the economy to foreign involvement. These moves are expected to make the country even more attractive to investors, whose money can drive the development of the manufacturing base.
The abundance of nickel ore will be one of the draws for these investors. This rich resource will remain a unique selling point for Indonesia, as manufacturing within the country appears certain to reduce transport costs associated with acquiring the mineral and allow greater efficiencies in the end-to-end battery production process.
With ongoing demand from China and the development of strong internal markets, nickel companies working in Indonesia almost certainly will see demand for their products continue to rise. By tapping into buried deposits, both Indonesia and the companies operating in the country appear certain to profit. This promising future is what companies such as Pacific Rim Cobalt are banking on.
Pushing Up Nickel Production
Another of the companies heavily invested in Indonesia is VALE S.A. (NYSE: VALE). The world’s leading nickel producer, Vale is pumping billions into its Indonesian operations, with the aim of unleashing the country’s potential for both nickel and cobalt. The company also has extraction operations in Brazil, Canada, and New Caledonia as it explores some of the world’s most valuable mineral sites. With one eye on the ground and one on the international markets, Vale has been building up its Indonesian operations as a source of exports to the lucrative Chinese markets. The company has also been building ties with Chinese industry.
Like Vale, Lundin Mining Corporation (TSX: LUN) (OTC: LUNMF) extracts a variety of minerals from sites around the world. With operations in Chile, the United States, Portugal and Sweden, the country has access to different markets and mineral resources, with nickel as one of its leading products. Lundin recently announced the acquisition of the Chapada copper mine in Brazil. In addition to copper, the mine will provide gold, which plays a part in some of the same electronic devices as nickel and cobalt.
Cobalt 27 Capital Corporation (TSX.V: KBLT) (OTCQX: CBLLF) provides an investment vehicle for those looking to put their money into battery metals, including the technologies behind energy storage and electric vehicles. The company recently completed the acquisition of Highlands Pacific Limited, and included with that acquisition was control of a share in the Ramu mining operation on the north coast of Papua New Guinea. Like Pacific Rim Cobalt’s investment in Indonesia, this move puts Cobalt 27 in a strong position to export to China. The Ramu operation itself was founded by a Chinese company, alongside which Cobalt 27 will now work.
The hunt for battery metals is made more urgent by the work of car manufacturers such as Honda Motor Company Ltd. (NYSE: HMC). Not only is Honda working on more hybrid and electric cars, but the company is moving part of its operations to China as a result of the escalating trade war. This will boost China’s growing battery industry along with the country’s demand for Indonesian nickel.
As battery demand continues to grow, so will Indonesia’s nickel industry — and the countries involved in that industry.
For more information on Pacific Rim Cobalt Corp., visit Pacific Rim Cobalt Corp. (OTCQB: PCRCF) (CSE: BOLT)
About NetworkNewsWire
NetworkNewsWire (NNW) is a financial news and content distribution company that provides (1) access to a network of wire services via NetworkWire 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, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with NNW Prime. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW 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, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.
For more information, please visit https://www.NetworkNewsWire.com
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
DISCLAIMER: NetworkNewsWire (NNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by NNW are solely those of NNW. Readers of this Article and content agree that they cannot and will not seek to hold liable NNW for any investment decisions by their readers or subscribers. NNW is a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, NNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.
NNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and NNW undertakes no obligation to update such statements.
NetworkNewsWire
5 years ago
Growing Demand for Nickel for Batteries Drives Increased Investments in Indonesian Nickel Sector
NetworkNewsWire Editorial Coverage: The need for nickel for batteries is driving greater investment in mines in Indonesia.
- Batteries play vital role in modern society, powering everything from phones to EVs.
- Pacific Rim Cobalt Corp. releases assay results confirming strong nickel, cobalt mineralization in Cyclops Project.
- As the world’s leading source of nickel, Indonesia is seeing serious investments.
Pacific Rim Cobalt Corporation (OTCQB: PCRCF) (CSE: BOLT) (PCRCF Profile) just announced assay results from its ongoing 2019 drilling campaign at the Cyclops, Nickel/Cobalt Project in Indonesia. VALE S.A. (NYSE: VALE) has also invested heavily in Indonesian nickel production. Glencore (OTC: GLNCY) both mines nickel and recycles it from old batteries. Lundin Mining Corporation (TSX: LUN) (OTC: LUNMF) produces nickel and its byproducts in four countries. Cobalt 27 Capital Corporation (TSX.V: KBLT) (OTCQX: CBLLF) has invested in a nickel mine in Papua New Guinea that, like Indonesia, offers good access to customers in Chinese industry.
To view an infographic of this editorial, click here.
Nickel in Deficit
Batteries play a vital role in modern society, powering everything from torches and phones to electric cars. While the role of cobalt and lithium in these batteries is widely recognized, nickel is also critically important. The mineral features in a wide range of batteries, including the majority of electric cars.
Nickel also plays an important part in steel production, which led to a surge in demand from China a decade and a half ago. At that time, production efforts increased to meet the demand; today, the growing importance of nickel in batteries is causing fresh pressure, along with a supply deficit. This increasing need for nickel has sparked more investments in nickel-producing regions — specifically Indonesia, the world’s largest nickel producer.
Drilling Results Confirm Assessment of Cyclops Project
One of the companies making that kind of investment is Pacific Rim Cobalt Corp. (OTCQB: PCRCF) (CSE: BOLT), which has been been actively involved in a drilling project located on the northern shore of Indonesia, near China, which boasts the world’s largest electric vehicle battery market. This week the company announced results from eight of the first fifteen holes drilled in the Yapase area of the Cyclops Project. The drilling confirmed the development of a complete mineralized laterite profile and is starting to confirm grades and widths that form the basis of the project’s historical estimate.
“The Cyclops Project was acquired following extensive due diligence on over 40 projects across Indonesia,” said Pacific Rim CEO Ranjeet Sundher. “The latest drill results continue to confirm our initial impression, assessment and observations of the project’s potential, which is beneficially located in proximity to the world’s largest buyer of battery metals. We expect the near-surface nature of cobalt and nickel mineralization at the Cyclops Project will lend itself well to low-cost, logistically straightforward drilling. We anticipate the opportunity to undertake a resource calculation study, as well as ongoing metallurgy and process option testing, will present itself in the near future."
Pacific Rim began a 50-hole core drilling program in mid-January on areas of laterite delineated by a geological mapping and a hand-augur geochemistry program. A total of 15 holes have been completed, covering a total of 255 meters, with hole depths ranging from 13 to 29 meters. Where possible, holes were drilled to fresh rock in order to intersect the full laterite profile.
The Drive for Clean Energy
The news from Pacific Rim comes as interest in electric vehicles — and demand for the batteries needed to power them — is gaining significant momentum. One of the most compelling reasons behind that increased demand is the desire for clean energy.
As climate change disrupts weather patterns and destabilizes lives around the world, industrialized countries are starting to recognize that change as not just an environmental challenge but a security one. Those countries have responded by implementing clean-energy and clean-air policies, which are transforming the way that automobile companies work.
More than 40 automakers are pivoting towards electric vehicles. While Tesla is grabbing most of the headlines, most recently by reducing the price on its Model 3 to make electric cars more widespread, more established car companies are also getting into the game. It took five years to sell the first million EVs but just six months to sell the last million. Hybrid cars are increasingly common, as are the charging points they need, and all but one of the major electric vehicle manufacturers use nickel in their batteries.
This is creating the demand that Pacific Rim is strategically working to address. As electric cars come to dominate the roads, the demand for the minerals used in them is set to soar.
Getting Ahead of the Nickel Race
The world’s largest source of nickel production by nation is Indonesia. The country is rich with sources of the metal, many of which have yet to be effectively exploited. But this isn’t the only reason why Indonesia is a natural home for Pacific Rim’s Cyclops project.
Located on the western rim of the Pacific, Indonesia is well positioned for exporting to China, the world’s largest consumer of battery metals. China has seen massive economic development in recent decades, thanks to the modernizing efforts of the country’s leaders. While modernization can be hard to balance with environmental protection, the Chinese leadership are well aware of the problems caused by environmental degradation, not the least of which is due to the heavy pollution in major Chinese cities. Those leaders are therefore encouraging clean alternatives, leading to a boom in electric car research and development.
Investing in exports to China is a sound strategy for any company specializing in battery metals. The country not only produces batteries for its own use but also makes them for export, thus creating a fresh wave of demand for nickel in a country that drove a previous nickel boom just after the millennium. This boom is drawing more companies to Indonesia. By setting up a fresh nickel and cobalt mining operation within easy reach of China, Pacific Rim is tapping into both supply and demand, ensuring an accessible market for its products.
Pacific Rim has positioned itself as an early mover in the race for Indonesia battery metals. The company has gained 100 percent control of the 5,000 hectare nickel and cobalt Cyclops Project. With production and environmental permits secured, the project benefits from excellent infrastructure, including close proximity to an eager workforce and supplies, sealed roads, ocean access, nearby port facility and gentle topography. The existing road system also enables year-round access to the project and connections to key nearby cities, including Sentani and Jayapura.
Digging Deeper for Nickel
As demand rises, several companies are expanding their interest in nickel.
VALE S.A. (NYSE: VALE) is the world’s largest nickel manufacturer and, like Pacific Rim, it has made Indonesia an important part of its mining strategy. The country is one of four where Vale operates, alongside Brazil, Canada, and New Caledonia. Vale has spent billions on developing Indonesian nickel production for export to countries including China. Vale makes a substantial effort to have a positive impact in the communities where it mines, with policies designed to mitigate the environmental impact of mining and to provide social benefits to locals. This is reflected in the fast moves Vale has made in response to a dam breach at Brumadinho, where it has poured money into helping locals affected by the accident and taken steps to protect the local environment even as it sets to work on rebuilding.
Glencore (OTC: GLNCY), one of the world’s largest diversified natural resources companies, is also heavily invested in mining for battery metals. Assets in Australia, Canada and Europe produce the company’s supply of nickel, as well as byproduct metals such as cobalt and copper. In addition to mining nickel, Glencore is one of the largest recyclers and processors of nickel-bearing products such as batteries, taking the minerals from discarded goods and finding ways to reuse them.
A diversified Canadian-based metal company, Lundin Mining Corporation (TSX: LUN) (OTC: LUNMF) has operations in Chile, the United States, Portugal and Sweden. Nickel is one of its leading products, alongside copper and zinc. Good results in the fourth quarter ensured that the company achieved or exceeded its production targets at all its operations in 2018, providing plenty of material for use in batteries and other manufacturing.
A leading nickel and cobalt investment vehicle, Cobalt 27 Capital Corporation (TSX.V: KBLT) (OTCQX: CBLLF) offers investors a chance to profit off the technologies behind energy storage and electric vehicles. To this end, it is investing in nickel production through a mine in Papua New Guinea. Like Indonesian Papua, Papua New Guinea is rich in nickel deposits and well located for exports across the Pacific to China.
Nickel’s central place in battery production, and so in meeting rising EV sales and building greener technology, should ensure heavy investment from companies for years to come, in Indonesia and beyond.
For more information on Pacific Rim Cobalt Corp., visit Pacific Rim Cobalt Corp. (OTCQB: PCRCF) (CSE: BOLT)
About NetworkNewsWire
NetworkNewsWire (NNW) is a financial news and content distribution company that provides (1) access to a network of wire services via NetworkWire 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, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with NNW Prime. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW 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, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.
For more information, please visit https://www.NetworkNewsWire.com
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
DISCLAIMER: NetworkNewsWire (NNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by NNW are solely those of NNW. Readers of this Article and content agree that they cannot and will not seek to hold liable NNW for any investment decisions by their readers or subscribers. NNW is a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, NNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.
NNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and NNW undertakes no obligation to update such statements.
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