May 23, 2022

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Nickel: the international price is making great profits for the country |  Finance |  Economie

Nickel: the international price is making great profits for the country | Finance | Economie

The conflict between Russia and Ukraine will not only benefit foreign sales of national coal and oil, but also Domestic nickel takes a quarter of an hour due to the high prices on the international market.

(Nickel: what is its use and why does its high price affect the economy?).

Which is that the price of the metal has gone up a lot while it is being marketed, in Colombia, the Cerro Matoso mining complex, The tenth largest producer of nickel in the worldwill not only have significant revenues from mineral exports, but will also improve extraction operating costs, and will have new projects under development.

The London Metal Exchange (BML) announced last Tuesday that it does not expect the nickel market to reopen before Friday, after suspending operations that day after an unprecedented price increase.

(Reasons for the suspension of nickel trade in London).

The stock exchange confirmed that it did not announce a specific date “in light of the uncertainty in the market in general,” and presented a series of measures that it intends to implement to ensure order in the nickel market after its resumption.

On that day (Tuesday, March 8), the Beirut Stock Exchange decided to suspend the trading of the nickel price since its price reached 100 thousand dollars per ton, and took a decision to close it completely when the price was at 80 thousand dollars per ton.
The volatility of the nickel price is staggering, especially on that day, as its value was five times higher than that recorded seven months ago when it did not exceed US$20,000 per ton.

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Therefore, with such a high price for nickel, the question remains: how it will be Cerro Matuso operation?

One of the biggest challenges the Córdoba mining complex, as well as other nickel-producing mines around the world, will face is how much ore it can produce to maximize its profits during this stage of price hikes.

“It is not as simple as extracting more ore because it involves responsible mining planning that cannot simply be scaled up. However, we will see many mining companies looking at options to increase their production and get the most revenue at this time,” explained Nicholas Arboleda, Head of District Mining and Minerals at Baker McKenzie.

The analyst confirmed that the rise in Nickel listing price on the London Metal Exchange is very advantageous For Cerro Matoso, contracts for the supply of minerals are calculated on the basis of market prices.

“In any case, there are very few companies that are exposed to the spot rate, so it will be difficult for them to fully benefit from the price increase, but without a doubt, they will be able to take advantage of it,” Arboleda said.

For his part, Juan Camilo Nariño, president of the Colombian Mining Association (ACM), noted that “without a doubt” the increase in mineral prices is beneficial for both companies and the country (the main partner in mining operations). Prices increase profits, rent payments, and royalties.

“Now, it is important to keep in mind that it is not only a time of price hikes but also a time of volatility and uncertainty due to the global supply crisis that has caused conflict with Russia and as once prices are in excess of US$100,000 a ton at any given time. The price drops at the same rate and speed,” the guild leader said.

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It should be remembered that Cerro Matoso not only expanded the operation of the complex with the Queresas and Porvenir projects, but also plans to develop the Planeta Rica Norte and Tarazá projects.

Alfonso Lopez Suarez
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