Outokumpu acquires a stake in Canada's FPX Nickel to decarbonize supply chain
1 Jun 2023 15:36 reported by Cassie Chen
Finnish stainless steel producer Outokumpu has agreed to invest EUR 11 million in Canadian mining and development company FPX Nickel to help decarbonize its supply chain.
The nickel produced by FPX Nickel has the potential to have a very low carbon footprint, expected to be in the top 10% of the lowest in the nickel industry, and can easily be used in the stainless steel industry, making it a good fit for Outokumpu's operations.
Outokumpu's stainless steel already has the lowest carbon footprint in the world, but the company wants to further decarbonize the product, which will also require a reduction in supply chain emissions.
The Baptiste project has the potential to produce up to 44,900 tons of nickel per year over the projected mine life of 35 years, according to FPX Nickel's preliminary economic assessment for 2020.
As part of the EUR 11 million investment, Outokumpu will own almost 9.9% of the issued and outstanding common shares of FPX. The transaction also entitles Outokumpu to a share of FPX Nickel's future production.
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