WMC forges $1bn in China nickel
By Robin Bromby
27aug03
WMC Resources has lashed itself to China's booming metal sector with a deal to sell $1 billion of nickel there between 2005 and 2010.
China now accounts for 10 per cent of world nickel consumption and, more importantly, generates about 40 per cent of the total growth in demand for the metal.
Nickel is the metal of the moment, its value having soared nearly 120 per cent over the past two years.
WMC has signed a new deal with China's largest nickel producer, the Gansu-based Jinchuan Group.
The Melbourne-based diversified miner last year signed to sell Jinchuan 30,000 tonnes of nickel-in-matte, and now has added a further 90,000 tonnes to be delivered between 2005 and 2010.
This means that WMC, which is targeting output of 99,000 tonnes this year, will commit 25,000 tonnes a year for three years to China, with 15,000 tonnes in each of the subsequent three-year periods.
Nickel-in-matte is produced by WMC's smelter arm and contains 68 per cent nickel. About 75 per cent of all nickel goes into stainless steel.
Prices have not been revealed, but will vary according to the London Metal Exchange spot price.
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