KEY POINTS
- Wyloo will sell low-carbon nickel through the Metalshub platform.
- They aiims to establish a green nickel price index for sustainable metals.
- The partnership supports transparency in production and ESG standards.
Nickel producer Wyloo, owned by Australian mining magnate Andrew Forrest, has announced its partnership with Metalshub, a digital trading platform, to sell its low-carbon nickel. The collaboration aims to establish a price index for green nickel, a step towards promoting sustainability in the metal industry.
Green Nickel market expansion
Wyloo’s decision comes in response to the London Metal Exchange (LME) stating it would not launch a dedicated green nickel contract, despite growing industry demands. Instead, LME suggested that low-carbon nickel, defined as producing 20 metric tons or less of carbon dioxide per ton of nickel, could be traded via its partner, Metalshub.
The joint statement released by Wyloo and Metalshub announced that nickel from Wyloo’s operations in Kambalda, Western Australia, would soon be available on the platform.
However, no exact timeline was provided for the start of sales, as Wyloo’s Kambalda mines were placed on care and maintenance earlier this year due to falling nickel prices. According to Mining.com, the two mines have the capacity to produce around 10,000 metric tons of high-grade nickel annually.
Metalshub, a German-based trading platform, emphasized its commitment to providing buyers with detailed information about the metal’s production location, carbon footprint, and environmental, social, and governance (ESG) standards.
“The transparency would give nickel producers an opportunity to market their products with a premium,” said Metalshub’s managing director, Sebastian Kreft.
Low carbon and market competition
Wyloo’s approach aligns with the industry’s push towards lower emissions and sustainable sourcing of metals. Indonesia, the largest nickel producer in the world, relies heavily on coal-based energy, resulting in high carbon footprints for its nickel.
In contrast, Wyloo and other miners using cleaner methods are looking to differentiate their products by showcasing their lower environmental impact.
Earlier this year, Wyloo indicated its willingness to look beyond traditional exchanges if the LME failed to respond to the market’s need for green metal trading.
This new partnership could help build an alternative platform for sustainable nickel trading and provide a benchmark for pricing environmentally-friendly metals.
Future market implications
The move will likely bring more visibility to the benefits of green metals while creating financial incentives for miners committed to reducing their carbon emissions.
Also, with global demand for nickel driven by the electric vehicle (EV) sector and battery production, buyers are increasingly prioritizing sustainable sourcing to align with environmental goals.
Wyloo’s partnership with Metalshub could pave the way for other producers to join similar platforms, adding momentum to the green metal movement and shifting the balance towards more transparent, lower-carbon mining operations.
