Waterton seeks up to $1bn for Quebec nickel mine
Waterton Global Resource Management has hired advisers to sell its Dumont nickel project in Quebec, seeking to capitalize on demand for the resource as automakers make plans to build more electric vehicles, according to people familiar with the matter.
The project, which is located about 300 miles northwest of Ottawa, could fetch as much as $1-billion in a sale, the people said, asking not to be identified because the matter is private. Goldman Sachs Group has been hired to run the process, the people said.
The auction is expected to draw interest from other miners, automakers, battery makers, and financial players, the people said. A representative for Waterton was not immediately available for comment. A representative for Goldman declined to comment.
Nickel is a key component in lithium-ion batteries used in electric vehicles. Battery and auto manufacturers have been aggressively trying to secure supply of the metal, especially in safe jurisdictions like Quebec. Tesla’s Elon Musk, for example, has pleaded with miners to produce more nickel.
Toronto-based Waterton agreed to buy a 50% stake in the Dumont project in 2017 for $22.5-million from RNC Minerals. RNC, which has since changed its name to Karora Resources, agreed to sell its remaining 28% stake in the shovel-ready nickel project last year for as much as $48-million.
Nickel has rallied about 67% on the London Metal Exchange since its nadir in March of last year amid a broad-based rally in commodities, with investors betting on strong demand growth as economies reopen.
Supplies of nickel will be tight for the next two years and there could be a significant deficit as early as 2023, according to BloombergNEF analyst Allan Ray Restauro.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
SBS® Tanks is a leading provider of innovative water security solutions with offices in Southern Africa, East and West Africa, the USA and an...
VISIT SHOWROOM
Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
