September 6, 2019 / 12:19 AM / 11 days ago

Australia's Poseidon Nickel to restart Black Swan project as nickel prices surge

(Reuters) - Poseidon Nickel Ltd, buoyed by a recent surge in nickel prices, said on Friday it would restart operations at its Black Swan project in Western Australia.

Prices of Nickel surged this week after Indonesia, the world’s biggest nickel ore producer, said it would stop exports from the start of next year, two years earlier than it initially indicated.

The “improved market dynamics” provided a price foundation to support a restart of the Black Swan operations, Poseidon said in a statement.

The nickel-focused miner, backed by billionaire Andrew Forrest, said the restart would take several months and may cost A$2.9 million ($2 million).

“We are now entering an important and critical time for Poseidon aided with tailwinds from improving, sustained increased nickel prices,” said David Riekie, who was appointed interim chief executive officer on Monday.

Goldman Sachs said in a note on Sunday it expected London nickel prices to reach $20,000 per tonne in three months due to the ban. Prices currently sit at $17,500.

Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Stephen Coates

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