Nickel and lithium have had a rocky ride over the past 18 months. But the outlook cannot be wider for the biggest local players in each commodity.
Already a subscriber?It’s a tale of two miners, two commodities and one client. Liontown Resources is gearing up to supply Tesla with lithium a year earlier than expected; BHP is shutting down nickel mines despite a long-term supply contract with Elon Musk’s carmaker.
Pant, now BHP’s chief financial officer, is one of the executive team now pondering an underlying full-year loss of about $450 million on nickel that comes on the back of writing down the value of the business by $5.4 billion pre-tax in February.Long-time BHP investors will also remember the debacle in 2009 over the Ravensthorpe nickel mine, built at a cost of $2.1 billion then shut only months after opening.
While careers and reputations have been on the line at Liontown, the same is now true for the LG executives behind the deal. Liontown started talking to LG about its backing straight after the loan was pulled in January, as more doubts emerged about Kathleen Valley. Tesla chairwoman Robyn Denholm was part of a delegation of nickel and lithium players who hit Canberra in February to press for production tax credits and other support for the Australian critical minerals sector. Denholm stepped up the fight after it became apparent theand lithium players like Liontown were also feeling the heat of a price plunge.
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