Canadian nickel and cobalt producer Sherritt has provided an update on its Moa JV expansion.

The Moa JV operation was set up in December 1994, when General Nickel of Cuba and Sherritt of Canada formed a 50-50 JV to mine, refine and market nickel and cobalt products. The vertically integrated JV produces mixed sulphide precipitate (MSP) at the Pedro Soto Alba plant in Moa Bay, Cuba. MSP is then shipped for onward refining at the Fort Saskatchewan plant in Alberta, Canada to produce high-purity nickel and cobalt products for a range of end markets.

Sherritt last year revealed it had commenced an expansion program to boost mixed sulphide precipitate (MSP) output by 20% or 6.5kt of contained nickel and cobalt. The program includes the completion of leaching-related infrastructure and is reported to cost US$77M, equivalent to approximately US$13,200/t (additional annual tonne) of contained nickel for the full expansion. Phase one of the program is expected to be completed in early 2024 increasing MSP production by 1.7ktpy contained nickel and cobalt. The second phase, involving plant improvements, will grow output by a further 4.8ktpy contained metals.

By increasing its production, Sherritt is targeting upcoming growth for nickel from the EV battery sector. Sherritt anticipates that approximately two-thirds of its increased output will be processed into finished nickel and cobalt as part of its integrated operations, with the remaining material sold to third-party producers of nickel sulphate.

The availability of nickel intermediates suitable for processing into battery-grade nickel products was considered one of the major pinch points in the EV battery supply chain. Sherritt’s move, in combination with the commissioning and announcement of additional HPAL projects in Indonesia, means that Project Blue expects tightness in the intermediates market to ease over the near term.