Canada Nickel Launches Wholly-owned NetZero Metals Inc. to Develop Zero-Carbon Production of Nickel, Cobalt and Iron
Canada Nickel Launches Wholly-owned NetZero Metals Inc. to Develop
Zero-Carbon Production of Nickel, Cobalt and Iron
TORONTO
,
July 27, 2020
/CNW/ - Canada Nickel Company Inc. (TSX-V: CNC) ("
Canada Nickel
" or the "
Company
") is pleased to announce it has created a
wholly-owned subsidiary,
NetZero Metals
, to begin the research and development of a processing facility that would be located in the
Timmins, Ontario
region
with the goal of utilizing existing technologies to produce zero-carbon nickel, cobalt and iron products.
The Company has applied for trademarks for the terms NetZero Nickel
TM
, NetZero Cobalt
TM
, and NetZero Iron
TM
in U.S.,
Canada
, and other jurisdictions related
to zero-carbon production of nickel, cobalt, and iron products.
"The electric vehicle industry and many other consumer sectors needs zero-carbon metal this decade – not in a nebulous 2050 timeframe contemplated by many
other resource companies," said
Mark Selby
, Chair & CEO of Canada Nickel.
"As a result of the unique advantages of the
Timmins
region with its close proximity to zero-carbon hydroelectricity and our Crawford Nickel-Cobalt Sulphide
project, comprised largely of serpentine rock that naturally absorbs CO
2
when exposed to air, Canada Nickel has the potential to develop zero-carbon products
that our customers are expecting from the mining sector. With nickel as a preferred metal to power the clean energy revolution, our commitment to net zero-
carbon production is the right step to take for the environment, for consumers, and for our investors."
Serpentine rock, the host rock comprising more than 90 per cent of the mass of the resource at the Crawford Nickel-Cobalt Sulphide Project
1
, has had numerous
studies completed that note that the rock naturally absorbs carbon dioxide (CO
2
) when exposed to air through a naturally occurring process of spontaneous
mineral carbonation.
The nickel industry faces a number of challenges as the current processing approach of laterite and sulphide ores generate a significant environmental footprint in
the form of SO
2
and CO
2
emissions. These environmental challenges will only worsen given the industry supply profile with the bulk of recent nickel supply growth
and the main source of future production growth being nickel pig iron production in
Indonesia
, which, according to industry sources, uses 25-30 tonnes of coal to
produce each tonne of nickel, which when combined with other sources of CO
2,
generates nearly approximately 90 tonnes of Scope 1 and Scope 2 CO
2
emissions per tonne of nickel produced. (see Figure 1).
For an electric vehicle battery pack that contained 50kg of nickel from this source,
it would represent approximately 4 tonnes of CO
2.
emissions for that vehicle.
Other sources of nickel supply growth that have additional environmental footprint issues are HPAL projects in
Indonesia
that are considering technologies such as
deep-sea discharge of tailings which would result in ocean discharge of approximately 100 tonnes of material per tonne of nickel.
Figure 1 – Estimated Carbon Footprint (tonnes CO2/tonne of Nickel produced) Selected Types of Nickel Production – Existing Projects/Producers (CNW
Group/Canada Nickel Company Inc.)
Key Technologies Being Explored to Develop a Zero-Carbon Footprint Operation
Canada Nickel will explore the use of various alternatives to achieve its NetZero objectives in each stage of the mining process: Mining, Milling and Processing.
Mining
The biggest single technology to reduce the carbon footprint of mining activities is the utilization of electric rope shovels and trolley trucks which utilize electricity,
rather than diesel fuel, as a power source wherever possible. Given the close proximity to zero carbon hydroelectric generating capacity, electricity use in place
of diesel fuel has the potential to significantly reduce carbon emissions.
The deposition of waste rock and tailings during the mining process will also expose the serpentine rock to air which provides the potential for this material to
absorb CO
2
through natural mineral carbonation and offsetting any CO
2
emissions from the project. The exact amount and rate at which CO
2
can be absorbed
from materials mined at Crawford will be analyzed during upcoming phases of work.
Milling
Traditionally, large scale processing of lower grade sulphide ores utilizes a significant amount of electricity. Again, the local proximity to hydroelectricity provide
the potential to minimize carbon emissions for this stage of production.
NetZero Metals - Nickel-Cobalt Concentrate Processing
Existing processes for processing nickel-cobalt concentrates to remove sulphur, iron, and other impurities have resulted in the generation of significant quantities
of CO
2
, SO
2
, and other impurities for a number of producers worldwide.
Canada Nickel will explore the potential for producing nickel and cobalt products from existing pyrometallurgical processes such as roasting, sulphation roasting,
and reduction using electric arc furnaces (utilizing natural gas rather coke or coal as a reductant) with the offgases captured and re-routed to allow the CO
2
be
captured by the waste rock and tailings from the Crawford nickel-cobalt sulphide project
1
The Company will also look at existing hydrometallurgical processes to
produce nickel and cobalt products such as the Albion or other similar processes, which generate minimal off-gases to produce nickel and cobalt products. The
off-gases will again be captured and treated to ensure CO2 and SO2 emissions are minimized.
NetZero Metals - Magnetite Concentrate Processing
The Company will explore the potential for the production of iron products utilizing existing direct reduced iron (DRI) processes or reduction in electric arc furnaces
utilizing natural gas and then re-routed to allow the CO
2
to be captured by the waste rock and tailings from the deposit.
Next Steps
The Company will announce some key leadership changes at the Board level to help guide the Company in this important endeavour. The NetZero approach will
be incorporated into the work done for the engineering for the Preliminary Economic Assessment which has been previously announced and currently underway.
Specific studies to analyze the quantity and timing of CO
2
absorption by the host rock at Crawford and process design for downstream processing of nickel and
cobalt materials and magnetite concentrate will be announced and get underway through the remainder of the year.
1
The Crawford Nickel-Cobalt Sulphide Project is an early stage exploration and development project. There is no guarantee that the project will reach advanced
development or production stage. The economic viability and technical feasibility of the Company's Crawford Nickel-Cobalt Sulphide Project has not been
established at any level of confidence supported by a PEA, PFS or FS, and as such there is currently no evidence to support that the project would result in a "net
zero-carbon" footprint. The Company is currently planning to complete a PEA by year-end 2020.
About Canada Nickel Company
Canada Nickel Company Inc. is advancing the next generation of nickel-cobalt sulphide projects to deliver nickel and cobalt required to feed the high growth
electric vehicle and stainless steel markets. Canada Nickel Company has applied in multiple jurisdictions to trademark the terms NetZero Nickel
TM
, NetZero
Cobalt
TM
, NetZero Iron
TM
and is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products. Canada
Nickel provides investors with leverage to nickel and cobalt in low political risk jurisdictions. Canada Nickel is currently anchored by its 100% owned flagship
Crawford Nickel-Cobalt Sulphide Project in the heart of the prolific
Timmins
-
Cochrane
mining camp.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward looking
information includes, but is not limited to, drill results relating to the Crawford Nickel-Cobalt Sulphide Project, timing of economic studies, the potential of the
Crawford Nickel-Cobalt Sulphide Project, the potential development of zero-carbon production of nickel, cobalt and iron, strategic plans, including future
exploration and development results, and corporate and technical objectives. Forward-looking information is necessarily based upon a number of assumptions
that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events
to differ materially from those expressed or implied by such forward-looking information. Factors that could affect the outcome include, among others: future
prices and the supply of metals, the future demand for metals, the results of drilling, inability to raise the money necessary to incur the expenditures required to
retain and advance the property, environmental liabilities (known and unknown), general business, economic, competitive, political and social uncertainties, results
of exploration programs, timing of the updated resource estimate, risks of the mining industry, delays in obtaining governmental approvals, and failure to obtain
regulatory or shareholder approvals. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking
information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available
to management as at the date hereof. Canada Nickel disclaims any intention or obligation to update or revise any forward-looking information, whether as a result
of new information, future events or otherwise, except as required by law.
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SOURCE
Canada Nickel Company Inc.
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For further information:
Mark Selby, Chair and CEO, Phone: +1 647-256-1954, Email: [email protected]
CO: Canada Nickel Company Inc.
CNW 07:00e 27-JUL-20