Outokumpu seeks to strengthen the supply chain of sustainable nickel by acquiring a share in the Canadian company FPX Nickel
Outokumpu Oyj
Press release
May 30, 2023 at 2.10 pm EEST
Outokumpu seeks to strengthen the supply chain of sustainable nickel by acquiring a share in the Canadian company FPX Nickel
Outokumpu has ambitious sustainability targets and is constantly looking for options to further decarbonize its stainless steel. In addition to looking at its own manufacturing operations, Outokumpu also seeks to strengthen its supply chain of sustainable raw materials for the future. Therefore, the company has today signed an agreement to become a shareholder in the Canadian company, FPX Nickel Corp., as the only stainless steel producer with an ownership share of 9.9%. The carbon footprint of the FPX Nickel product is projected to be among the lowest 10% in the nickel industry and it is readily usable in stainless steel industry, making it well suited for Outokumpu’s stainless steel operations.
Based in Vancouver, Canada, junior mining and development company FPX Nickel owns and develops the Baptiste nickel deposit in the Decar Nickel District located in central British Columbia. The current estimate is that the nickel production would start approximately at the end of the current decade. Outokumpu has agreed to invest EUR 11 million in the company. With the investment, Outokumpu secures a right to a share of FPX Nickel’s future production.
The nickel contained in the Baptiste deposit is in the form of a naturally occurring nickel-iron alloy called awaruite, which will generate a novel ferronickel product. Given its ferromagnetic properties, this alloy can be recovered to a high-value ferronickel product using a simple process of magnetic separation and flotation, which represents certain cost and sustainability advantages in comparison to the traditional furnace smelting techniques used to produce ferronickel. Further, the proximity of the Baptiste deposit to the Canadian hydro-electric power grid will assist FPX in achieving nickel production with among the lowest carbon intensity in the global nickel industry.
“Our partnership with Outokumpu testifies to Baptiste’s potential to produce a premium nickel product that can bypass the intermediate smelting stage, thus becoming a highly sought-after feedstock for the responsible production of low-carbon finished products in multiple consumer and industrial markets, including stainless steel. FPX is pleased to be Outokumpu’s preferred partner as they look to secure the sustainable, long-life nickel units which are best aligned with their strategic objectives,” comments Martin Turenne, FPX’s President and CEO.
“The carbon footprint of Outokumpu’s stainless steel is already the lowest in the world, but we want to further decarbonize our product. This also requires the reduction of our supply chain emissions. To achieve this, we work together with our suppliers to strengthen the sustainability of the entire supply chain – including environmental, social and governance aspects. The nickel found in the deposit developed by FPX Nickel in Canada has a very low carbon footprint. Therefore, we are excited to be part of this development project as a shareholder, which, once realized, would mean an excellent low-emission source of nickel and in a composition which suits our own production,” says Marc-Simon Schaar, Head of Raw Material Sourcing at Outokumpu.
For more information:
Investors: Linda Häkkilä, Head of Investor Relation, tel. +358 40 071 9669
Media: Päivi Allenius, VP – Communications and Brand, tel. +358 40 753 7374 or Outokumpu media phone +358 40 351 9840, e-mail media@outokumpu.com
Outokumpu is the global leader in stainless steel. The foundation of our business is our ability to tailor stainless steel into any form and for almost any purpose. Stainless steel is sustainable, durable and designed to last forever. Our customers use it to create civilization’s basic structures and its most famous landmarks as well as products for households and various industries. Outokumpu employs approximately 8,500 professionals in close to 30 countries, with headquarters in Helsinki, Finland and shares listed in Nasdaq Helsinki. www.outokumpu.com
