Nickel price collapse: Green premium won’t save Australian nickel says Metals Acquisition boss Mick McMullin

The boss of acquisitive copper producer Metals Acquisition says the nickel market has “fundamentally shifted” and it is unlikely the world’s largest buyer, China, will pay a “green premium” for the commodity.

Mr McMullin can acquire more mines thanks to a lending syndicate backed by foreign banks, but the economics of buying a nickel mine outside Indonesia in a tier one jurisdiction are tricky.“The cost curve in nickel has fundamentally shifted down. And to buy an asset we need to be able to balance the cost curve,” Mr McMullin said.

“That was selling to US and European car companies who actually cared about this sort of thing. That’s the quantum of premium you’re going to get. And so I doubt that’s enough to move the needle on nickel.” He wouldn’t rule out investing in lithium but said he did not see it as attractive, citing price volatility in the market.

Nederland Laatste Nieuws, Nederland Headlines

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