South Korea will soon get relief from its burgeoning nickel prices. The country is investing in a new nickel-mining project to ease the pressure on soaring nickel prices.
The commerce ministry reported that state-run Korea Resources Corp. is leading a South Korean syndicate that will invest around US$ 1.1 Billion in a nickel mine development project in Ambatovy, Madagascar.
The mine is estimated to contain around 125 Million Ton of nickel and it will start the annual production of about 60,000 Ton nickel by 2010. The syndicate of South Korea is led by Korea Resources, Keangnam Enterprises Ltd., STX Corp. and Daewoo International Corp. will together have a 27.5% stake in this project. Dynatec from Canada and Sumitomo Corp from Japan will take 40% and 27.5% share, respectively.
As a support from government, South Korean players have been provided the right to buy 50% of the total production. This progress would lead to a stable and constant nickel supply to the domestic market of South Korea.
South Korea is among the world’s largest consumers of nickel, but its economy is suffering severely because of soaring nickel prices that reached the record value of $ 32625 per ton in 2006. However, the commencement of new project will increase the nickel production. The increased nickel production is anticipated to reduce its prices that will augment the profitability of key nickel-consuming industries.
According to the RNCOS’ recent report, “Nickel Market Outlook (2007)”, South Korea stands at number four in the list of largest nickel-consuming countries in world. The main nickel-consuming sectors include Electronics Manufacturing, Stainless Steel Production and Automotive Sector. The consumption of nickel in South Korea is anticipated to reach 130,000 Ton by 2006 and 155,000 Ton by 2010.
This Nickel market research report addresses some interesting issues for today’s global business environment:
- Situation of Nickel stock and contracts on London Metal Exchange
- Insight into current market trends
- Top ten countries according to production and consumption levels
- Factors driving growth and change in the global nickel market
- Competitive environment and market leaders
- Key Challenges and Opportunities in the nickel market
- Future outlook of the market
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