Sirius Resources One Step Closer to Building its Australian Nickel Mine

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Sirius Resources is telling lenders it wants to be free of hedging requirements and able to return early profits to shareholders as it begins talks with lenders over one of the few new mine projects in Australia.

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The nickel aspirant took an important step towards becoming a miner on Monday when the definitive feasibility study for its Nova discovery revealed a 10-year mine could be built for $473 million. Sirius managing director Mark Bennett told the Sydney Morning Herald on Monday that the company had shortlisted eight potential lenders and six potential customers keen to buy a concentrate of nickel and copper from the mine.

The week’s biggest mover on the weekly Stainless MMI® was the nickel spot price, which saw a 4.1 percent decline on the LME to $18,965 per metric ton. This comes on the heels of a 6.4 percent increase the week before. Following a 6.1 percent increase in the week prior, the nickel 3-month price fell 4.1 percent on the LME last week to $19,025 per metric ton. The cash price of primary Indian nickel fell 1.1 percent to INR 1,171 ($19.46) per kilogram after rising 4.1 percent the week before.

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Chinese stainless steel prices were mixed for the week. Prices for Chinese ferro-chrome remained constant, closing the week at CNY 8,300 ($1,338) per metric ton. Following a steady week, prices for Chinese ferro-moly closed flat at CNY 145,000 ($23,377) per metric ton.

Following a 4.9 percent increase in the week prior, the price of Chinese primary nickel fell 2.2 percent last week to CNY 131,050 ($21,128) per metric ton. Closing at CNY 16,400 ($2,644) per metric ton, Chinese 304 stainless steel scrap remained unchanged for the week. At CNY 16,100 ($2,596) per metric ton, the price of Chinese 316 stainless steel scrap did not change since the previous week. Chinese 304 stainless coil remained essentially flat from the previous week at CNY 16,400 ($2,644) per metric ton. At CNY 26,000 ($4,192) per metric ton, the week finished with no movement for Chinese 316 stainless coil.

Korean 304 stainless coil traded sideways last week, hovering around KRW 4.2 million ($3,881) per metric ton. At KRW 2.6 million ($2,376) per metric ton, the week finished with no movement for Korean 430 stainless steel coil. Closing at $0.89 per pound, the Allegheny Ludlum 304 stainless surcharge remained unchanged for the week. The Allegheny Ludlum 316 stainless surcharge remained steady from the previous week at $1.31 per pound.

The Stainless MMI® collects and weights 14 global stainless steel and raw material price points to provide a unique view into stainless steel price trends. For more information on the Stainless MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.

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