Korea Zinc-Trafigura all-in-one nickel refinery to expand East Asian MHP supply

The refinery will use an integrated hydro-pyro process to produce a range of feedstocks including nickel matte and mixed hydroxide precipitate (MHP). It will be established through Korea Zinc’s nickel sulfate subsidiary, Korea Energy Materials (KEMCO) and located in Ulsan, South Korea.

An increasing number of companies are opting for MHP instead of the more traditional nickel metal (briquettes) and nickel matte production routes. But South Korea remains one of the only countries outside of China building MHP conversion capacity.

Despite this, there are currently only two nickel sulfate producers in South Korea that can take MHP as a primary feedstock to produce battery grade nickel sulfate.

Concerns remain with some market participants over the environmental impact of MHP.

MHP and matte are primarily produced in Indonesia, using fossil fuels as a power source, leading to a higher carbon footprint.

Fastmarkets assessed the daily nickel mixed hydroxide precipitate outright price, cif China, Japan and South Korea at $13,300-13,500 per tonne on November 17, down slightly from $13,800-14,000 per tonne the previous day.

The daily nickel mixed hydroxide precipitate payable indicator, % London Metal Exchange, cif China, Japan and South Korea was at 76-79% on November 17, stable over the week.

As part of the deal, Trafigura will supply Korea Zinc with 20,000-40,000 tonnes per year of feedstock.

“With the energy transition in progress, Korea Zinc is committed to solidifying its position as the world’s leading non-ferrous metal refiner in the field of nickel, a key battery material,” Korea Zinc chairman Yun B Choi said.

The agreement between Korea Zinc andhttps://xml.metalbulletin.com/Article/5113351/Battery-raw-materials-all/Korea-Zinc-Trafigura-eye-nickel-smelter-sulfate-refinery-joint-venture.html Trafigura comes after the two parties discussed a joint venture for a nickel smelting and sulfate refining project in November 2022.

Fastmarkets assessed the nickel sulfate, cif Japan and Korea price at $4,070 per tonne on Friday November 17. The price has been weakening over the past two months from $4,881.47 per tonne on September 8.

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