SMM8, June 6: recently, Eramet released its second quarter financial results in 2019. The company believes that despite the high price of nickel, the price environment remained unfavourable in the first half of 2019, with LME nickel prices falling by an average of 11 per cent.
In the first half of 2019, despite three times of mining, nickel production in SLN, New Caledonia, reached an all-time high, reaching 1.9Mt nickel ore, an increase of 7 per cent.
Operational records of mining and metals:
The company's 2019 production target is confirmed as: manganese ore 4.5Mt tons, nickel ore export 1.5Mt tons, although since 2019 mining grade is low (compared with previous years), but still has 720 kilotons of ore concentrate.
Global stainless steel production was stable and at a high level, with a steady increase in global stainless steel production in the first half of 2019 (+ 0.2 per cent), driven by growth in China (+ 3.3 per cent), and a 2.9 per cent increase in global demand for primary nickel, particularly supported by battery development (+ 25 per cent). Driven by NPI (+ 28.6 per cent), global primary nickel production increased (+ 10.8 per cent), particularly in Indonesia (+ 41.8 per cent).
Global stainless steel production:
Global primary nickel production (excluding recovery):
In the first half of 2019, the company continued to be adversely affected by the interruption of mining operations in the East Coast Centre, which affected SLN FeNi production. The new man-hour agreement increased nickel ore production by 1.9Mth (+ 7 per cent), increased ore exports by 8 per cent to 489 kth. in the first half of 2019, and exported 650kth in mid-June.
Nickel mine export:
Due to the interruption of the East Coast mining center, production of ferronickel fell by 12% in the first half of 2019 and sales of ferronickel by 13% (24 kilotons) due to low-grade ore loaded into the furnace.
Ferronickel production:
Weda Bay Nickel, a very competitive NPI project in Indonesia
(Weda Bay Nickel reality)
One of the largest nickel oxide deposits in the world on the island of Halmahera, Indonesia, with 9Mt nickel resources, worked with Aoyama, the world's number one stainless steel producer, in May 2018 to implement the shareholder structure: Eramet 43% / Tsingshan 57%.
Castle Peak is responsible for plant construction and operation, and Eramet is responsible for mining.
Indonesia's NPI production is highly competitive, with a nickel production target of 30kt/ years, of which Eramet's annual production is 13kt/ years, which is expected to be produced for the first time in the second half of 2020 and quickly reach nominal capacity by 2021.
(factory scene)
"Click to download Eramet Q2 original text announcement
