The Mincor Resources NL (ASX: MCR) share price slipped lower today, despite the nickel miner announcing the opening of its Cassini Nickel Mine.
At the close of trade, the Mincor share price was down 1.54%, trading at 96 cents.
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About Mincor's newly opened mine
The Cassini Mine will form the bedrock of Mincor's Kambalda nickel operations in Western Australia.
Mincor is clear about its aim: carving out a slice of the growing market for rare earth and transition metals due to the proliferation of electric vehicles (EVs) requiring the materials over the next decades to come.
Mincor – which also has large gold mining operations – aims to become a high-grade nickel sulphide producer and extract its first nickel concentrate in the first quarter of 2022.
It's the result of two years of work for the West Australian miner. Mincor secured a processing and sales solution with BHP Group Ltd (ASX: BHP) in 2019, raising $95.6 million in equity capital and securing a $55 million project finance facility.
But despite the positive news today, Mincor's share price has fallen 4% this week, on the back of a 12% decline this month and 13% this year to date.
Mincor share price and nickel prices steadying
The Mincor share price falls are likely to be a recent correction, with the miner beating the basic materials sector overall by nearly 50% over the past 12 months.
The nickel price is also undergoing a correction of sorts, stabilising in recent months after rising nearly US$3,000 to a high of $18,978 USD/t by February this year, before falling to its current price of around $16,271 USD/t.
Mincor, like other miners focused on the EV revolution, is hoping that the surge in renewable energy technology will return the nickel price to its historical highs of 2007, where it peaked at nearly $50,000 USD/t.
Mincor mine represents 'new chapter' for Kambalda
Mincor managing director David Southam was proud that the mine could have a restorative effect on the region. He said:
This is a tremendous milestone for Mincor, for our employees, shareholders, suppliers, strategic partners and other key stakeholders, and for the Kambalda nickel district more broadly.
The official opening of the first new nickel sulphide mine in the region in over a decade is a proud moment, and one that signals the start of a new chapter for this world-renowned nickel district.
Mincor chair Brett Lambert added that the mine was welcome news to shareholders:
Today's official opening ceremony marks a key milestone towards realising our vision to resume profitable and sustainable nickel sulphide mining in Kambalda, and to do so in an environmentally responsible and ethical manner that will see this great nickel province return to the forefront of Class-1 nickel production globally – playing a key role in the impending global energy transformation.
