NEW YORK Royal Nickel Corp. has said that widespread
bearishness on nickel pricing has failed to deter the
investors that matter, with the company still in
discussions with Japanese mining houses for the development of
its Dumont project in Quebec.
The company is in the process of completing a project
feasibility study, which should be released in June, Royal
Nickel senior vice president of business development Mark Selby
told AMM on the sidelines of the Metal Bulletin International
Nickel Conference in Toronto.
Selby said that while falling nickel prices and global
oversupply have discouraged interest from some general
investors, negotiations with many others are continuing
Were continuing discussions with a number of
Japanese mining houses. Theyve been in this business over
40 years, so theyve been through lots of cycles, he
said. So yes, while (low nickel prices) have had an
impact for some investors, it hasnt for the investors
Selby said that the project has attracted some interest from
private equity investors who have only emerged in the last
year. Many are enticed by the projects location in the
low-risk jurisdiction of Quebec, Selby said.
He added that the Toronto-based companys recent deal with
Shanghai-based stainless steel producer Tsingshan Holding Group
Co. to help secure supply for a new plant processing sulfide
nickel concentrate (
amm.com, March 12
) represented a new outlet
for the industry.
Today, as a concentrate producer, you have about half a
dozen choices as to where you can ship your concentrate,
he said. Like anything in China, if one person does it
and it works, the next week youre going to have 20 people
trying it. So we think its a very exciting
developmentnot just for Royal Nickel, but all concentrate
Construction on the Dumont mine is projected to start following
the receipt of permits in 2014, with commissioning to follow in
late 2015. The mine is expected to ramp up production in 2016.