The threat that Chinese-produced nickel pig iron poses to Sudbury's nickel producers is overblown, according to renowned mining analyst Raymond Goldie.
Speaking to the 11th International Platinum Symposium at Sudbury's Laurentian University on June 22, Goldie said that nickel pig iron — a low-cost substitute for refined nickel — is too flawed to pose a serious long-term threat.
“There's two big problems with pig nickel,” said Goldie, senior mining analyst and vice-president of Toronto-based Salman Partners.
“Firstly, it's dirty, and second, making it is dirty. It is in fact too dirty to be the sole source of nickel in stainless steel.”
Nickel pig iron is made by putting nickel-rich dirt in a specialized furnace.
However, the end product is riddled with impurities, and must be blended with pure or virgin nickel to make stainless steel. For every pound of pig nickel, four pounds of virgin nickel is required.
“This kind of restricts the demand for pig nickel,” says Goldie. “Until the pig-nickel producers can make a cleaner product, I think that four-to-one ratio is the best they'll get.”
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