MELBOURNE - Nickel miner Wyloo, owned by Australian mining magnate Andrew Forrest, said that if the London Metal Exchange (LME) doesn't launch a green nickel contract, the industry will have to look for another trading venue.
Forrest had told Australian media last month that the LME should classify its contracts into clean and dirty to give customers more choice. Wyloo is set in May to shutter two nickel mines in Australia that it bought last year for $504-million.
The LME said that low carbon nickel, which it classifies as producing 20 t of carbon dioxide or less per tonne of nickel, could already be traded on its partner MetalsHub's system.
"Wyloo has been contacted by several parties seeking to develop a green nickel premium, so there is clearly demand for greater transparency and differentiation between clean and dirty nickel," Wyloo CEO Luca Giacovazzi told Reuters.
"As the world’s largest metals exchange, the LME should be leading in this area," he said.
"If the LME is to continue to set the standard for ethical metal supply practices, it cannot afford to take no action, or the industry will look for an alternative marketplace.”
Calls for a nickel price that reflects strong environmental and governance standards have grown from high-cost producers such as Australia, where low prices have forced miners to shutter operations due to a flood of Indonesian supply, most of which is produced using coal.