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The Resource Angle

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Are people here who have shares selling based on this or holding?

I've been holding and adding small bits since 2006 ... it is speculative of course, but the way I see it, there are a lot of sources of nickel, not all are nickel sulphide, not all are battery grade and not all also have cobalt. That it is not developed leaves opportunity for it to be developed using carbon sequestration methods and room for a development partner. It appears to be one of the largest nickel sulphide deposits in the world.

Some of the Russian, Chinese and Indonesian mines are complete ecological disasters, particularly this one.

Giga Metals
 
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A small number of low-quality comments about Giga’s Turnagain prospect -

I have traversed its access road many, many times - well over a dozen. This is the fabled Cassiar Highway, 450.1 miles of true remoteness that, if not so wild and untraveled as my own Denali Highway, still is over three times its length. Other than the “anchor” communities at each end, there are two settlements, Native villages, its entire length: Iskut, a couple of hundred people, and Dease Lake, about 450. Dease Lake is the jumping-off site for the deposit, which is about 45 miles ENE of the village. There exists an extremely rough track that is usable some summer months of about 60 miles long; nothing that is unusual in this part of the world.

Most beneficial - hardly hyperbole to call this a binary Go/NoGo benefit - to any such mining operations here is that about five years ago, Hydro BC pushed through an extremely large (1100 kVA? I forget and won’t look right now) power line in this region (great for would-be Whooperdjardjers along the Cassiar, but I am digressing to my favorite topic.....).

Any such nickel occurrences would be within the Cache Creek Complex, a series of ultramafics with typical dunite, pyroxenite and peridotite, typically and especially in this region highly serpentinized. Hydrothermal fluids associated possibly with the tectonic activity that caused the uplift of these very deep-origin rocks do normally alter the olivines and peridotites to form serpentine and have a propensity to concentrate associated nickel into some higher-grade material. More importantly for the history of mining in this region, the characteristic mineral that forms such serpentinization is chrysotile - that which is more familiarly known as asbestos. For many decades this remote part of British Columbia produced the richest and highest-grade asbestos in the world. This is something I would characterize as having the potential to be a very large negative: if present, it could complicate the mining, separating and waste processing to such an extent as to doom the project; this is, however, a consideration for any non-lateritic nickel operation worldwide.

For any interested in where this is, here is a snap from one of my roadbooks. The prospect is close to the “M” in the “Cassiar Mountains” located at the top of this snap-your-neck-sideways photo.
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Tesla In Discussions To Source Low-Carbon Nickel From Canada | OilPrice.com

Even OilPrice.com is taking note of this story about Tesla's need for low carbon nickel. What exactly is involved with making nickel mining low carbon? I wonder if Musk is becoming interested in developing low carbon mining technologies. Could be handy experience for mars.

Hydroelectric power & carbon sequestration via silicate tailings->carbonates as far as I can tell.

Carbon Sequestration at Turnagain Nickel Project
 
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Old fashioned way is to use nickel sulphide ore deposits.

Canadian way is to use nuclear power.

From memory, the 2 nickel regions i worked at had approx a 30fold difference in carbon emissions per unit. I could check back at that, but its somewhere between 1 and 2 orders of magnitude

Canadian nickel is typically the high energy variety. Presumably sumitomo for panasonic was low energy Philipino variety.
 
I’d come up with this realization last night, and now I see that it somewhat is mentioned both in the “carbon sequestration” reference the company provides as well as in @jdw’s post, above.

That huge transmission line I had referenced in my prior post comes from B.C. Hydro’s hydroelectric plant in coastal B.C. that had been emplaced in order to service Alcan’s Kitimat aluminum smelter. Now that the smelter is shuttered, it behooved the power company to utilize its energy elsewhere; thus the transmission line. I take issue - happy to be shown wrong, if I am - with the mining company’s assertion that it is “choosing to use clean hydro over other sources of electricity, even if that is more expensive”. I am absolutely certain that no other source of electricity available to them would be cheaper. The sole alternative would be for them to run their own diesel-fired generator, a massively expensive proposition both in terms of capital costs as well as hauling all that fuel so far and on a can’t-shut timeline. In fact, one of BCH’s decisions in creating the line was in order to make feasible any number of metallic mining proposals in that part of the world.

So I’m calling that wording from Giga grandstanding.
 
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With the demise of Toshiba's "portable" nuclear power plants, yeah, pretty much the only viable power source is BC Hydro. They did the base extension (300kvA I think) north of Terrace back in 2008 or so before Teck & Novagold pulled out of projects in the area. I believe there is a relatively short extension required now.

I also know the local bands are involved in the development (part of the ethical side); the Kwadacha First Nation and the Kaska Dena Council signed a "Cornerstone Agreement", designed to be the foundation of a respectful, cooperative and progressive relationship to facilitate the development of the Turnagain Project. As far as I have heard, they are all on side with the development as it will bring both power & jobs to their communities.

The company was formerly called Hard Creek Nickel, which was opportunistically renamed to Giga Metals in 2016 when they realised they were sitting on a large Class 1 nickel deposit along with a fair bit of cobalt in the mix - all materials that anyone with a battery factory would be interested in. Not a lot of battery factories in North America that are not prefixed with Giga ...

I always thought that this undeveloped resource would be perfect for Tesla to be involved in as it could be developed as ecologically as possible and could also offer the chance for them to own, or vertically integrate the resource via a development partnership. If Tesla just bought nickel as a commodity on the open market from existing producers, they would be open to environmental and ethical criticism as well as supply and price fluctuations.
 
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I've been holding and adding small bits since 2006 ... it is speculative of course, but the way I see it, there are a lot of sources of nickel, not all are nickel sulphide, not all are battery grade and not all also have cobalt. That it is not developed leaves opportunity for it to be developed using carbon sequestration methods and room for a development partner. It appears to be one of the largest nickel sulphide deposits in the world.

Some of the Russian, Chinese and Indonesian mines are complete ecological disasters, particularly this one.

Giga Metals
There is a picture of the Tesla gigafactory on Giga Metals’ website. Maybe a partnership with Tesla will be announced on battery day?

Welcome to Giga Metals Corporation
 
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I researched this company last year and again this year. Two reasons I don't think Tesla would partner/buy this company.

1) They speak mostly of pig nickel which is a watered down type of nickel that is not used in any battery technology. Pig nickel is also a dirty way of mining that is mostly done in China. It produces a lot of contaminated water.
2) They are an exploration company which is not currently mining. Tesla wanted to find a company that already had mining set up that was environmentally friendly. Since they are not actually mining that means the cost and engineering required to retrieve the nickel is not fully known.

Maybe Tesla want to buy the mines but they already said they didn't want to fully go into mining... maybe Tesla gave up on finding an environmentally friendly miner cause they don't exist and why would a mine add the logistics to bend to the requirements of a single company-Tesla. That would be a big contract but miners don't think like that... Just look into the industry. Maybe their new battery technology utilizes lower grade Nickel?... I've researched nickel a lot and I'm good with not buying this on the hype. There are so many unfavorable variables.
 
Giga Metals deposit is class 1 (nickel sulphide) suitable for batteries, not class 2 or pig nickel which is suitable for stainless steel. There are not a lot, if any, environment friendly nickel mines operating around the world - China, Russia and Indonesia in particular are horror shows. As close as it gets is in Canada & Australia where there are at least some regulations.

Tesla could partner with any suitable junior and at least own part of the resource or supply in return for a contract that would finance ethical and environmentally proper development. This could be done without Tesla going into the mining business - they just need a mining partner and the resource.
 
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There is a picture of the Tesla gigafactory on Giga Metals’ website. Maybe a partnership with Tesla will be announced on battery day?

Welcome to Giga Metals Corporation

Although I hope that Tesla will annouce a partnership with *someone* in this space, if not Giga Metals, that picture has been up on their site since 2016 or so. About the same time they realised they had a resource that was becoming very relevent to the EV industry.

They've always gone out of their way to state that they are talking to Daimler/BMW and others, but none of the others have bothered to bring a battery factory online yet, so it seems pretty clear they were targeting Tesla more than any other.
 
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Although I hope that Tesla will annouce a partnership with *someone* in this space, if not Giga Metals, that picture has been up on their site since 2016 or so. About the same time they realised they had a resource that was becoming very relevent to the EV industry.

They've always gone out of their way to state that they are talking to Daimler/BMW and others, but none of the others have bothered to bring a battery factory online yet, so it seems pretty clear they were targeting Tesla more than any other.

It's gone now, replaced with a charging port.
 
Anyone care to upvote my SAY question:

"You have stated in the past Tesla’s goal is to achieve 2 terrawatts of battery production a year. How is Tesla going to secure enough battery materials to support this growth and which materials do you find the most challenging in this respect?"

I would think people in this thread would be interested in the answer. Thanks