Country for PR: United States
Contributor: PR Newswire New York
Monday, July 27 2020 - 21:00
Canada Nickel Launches Wholly-owned NetZero Metals Inc. to Develop Zero-Carbon Production of Nickel, Cobalt and Iron
TORONTO, July 27, 2020 /PRNewswire-AsiaNet/--

Canada Nickel Company Inc. (TSX-V: CNC) ("Canada Nickel" or the "Company") is 
pleased to announce it has created a wholly-owned subsidiary, NetZero Metals, 
to begin the research and development of a processing facility that would be 
located in the Timmins, Ontario region with the goal of utilizing existing 
technologies to produce zero-carbon nickel, cobalt and iron products.  

The Company has applied for trademarks for the terms NetZero Nickel(TM), 
NetZero Cobalt(TM), and NetZero Iron(TM) in U.S., Canada, and other 
jurisdictions related to zero-carbon production of nickel, cobalt, and iron 

"The electric vehicle industry and many other consumer sectors needs 
zero-carbon metal this decade -- not in a nebulous 2050 timeframe contemplated 
by many other resource companies," said Mark Selby, Chair & CEO of Canada 

"As a result of the unique advantages of the Timmins region with its close 
proximity to zero-carbon hydroelectricity and our Crawford Nickel-Cobalt 
Sulphide project,  comprised largely of serpentine rock that naturally absorbs 
CO2 when exposed to air, Canada Nickel has the potential to develop zero-carbon 
products that our customers are expecting from the mining sector. With nickel 
as a preferred metal to power the clean energy revolution, our commitment to 
net zero-carbon production is the right step to take for the environment, for 
consumers, and for our investors."

Serpentine rock, the host rock comprising more than 90 per cent of the mass of 
the resource at the Crawford Nickel-Cobalt Sulphide Project[1], has had 
numerous studies completed that note that the rock naturally absorbs carbon 
dioxide (CO[2]) when exposed to air through a naturally occurring process of 
spontaneous mineral carbonation. 

The nickel industry faces a number of challenges as the current processing 
approach of laterite and sulphide ores generate a significant environmental 
footprint in the form of SO[2] and CO[2] emissions. These environmental 
challenges will only worsen given the industry supply profile with the bulk of 
recent nickel supply growth and the main source of future production growth 
being nickel pig iron production in Indonesia, which, according to industry 
sources, uses 25-30 tonnes of coal to produce each tonne of nickel, which when 
combined with other sources of CO2, generates nearly approximately 90 tonnes of 
Scope 1 and Scope 2 CO[2] emissions per tonne of nickel produced. (see Figure 

For an electric vehicle battery pack that contained 50kg of nickel from this 
source, it would represent approximately 4 tonnes of CO2.emissions for that 
vehicle.  Other sources of nickel supply growth that have additional 
environmental footprint issues are HPAL projects in Indonesia that are 
considering technologies such as deep-sea discharge of tailings which would 
result in ocean discharge of approximately 100 tonnes of material per tonne of 

Key Technologies Being Explored to Develop a Zero-Carbon Footprint Operation

Canada Nickel will explore the use of various alternatives to achieve its 
NetZero objectives in each stage of the mining process: Mining, Milling and 


The biggest single technology to reduce the carbon footprint of mining 
activities is the utilization of electric rope shovels and trolley trucks which 
utilize electricity, rather than diesel fuel, as a power source wherever 
possible.  Given the close proximity to zero carbon hydroelectric generating 
capacity, electricity use in place of diesel fuel has the potential to 
significantly reduce carbon emissions.

The deposition of waste rock and tailings during the mining process will also 
expose the serpentine rock to air which provides the potential for this 
material to absorb CO[2] through natural mineral carbonation and offsetting any 
CO[2] emissions from the project.  The exact amount and rate at which CO[2] can 
be absorbed from materials mined at Crawford will be analyzed during upcoming 
phases of work. 


Traditionally, large scale processing of lower grade sulphide ores utilizes a 
significant amount of electricity.  Again, the local proximity to 
hydroelectricity provide the potential to minimize carbon emissions for this 
stage of production.

NetZero Metals - Nickel-Cobalt Concentrate Processing

Existing processes for processing nickel-cobalt concentrates to remove sulphur, 
iron, and other impurities have resulted in the generation of significant 
quantities of CO[2], SO[2], and other impurities for a number of producers 
Canada Nickel will explore the potential for producing nickel and cobalt 
products from existing pyrometallurgical processes such as roasting, sulphation 
roasting, and reduction using electric arc furnaces (utilizing natural gas 
rather coke or coal as a reductant) with the offgases captured and re-routed to 
allow the CO[2] be captured by the waste rock and tailings from the Crawford 
nickel-cobalt sulphide project[1]. The Company will also look at existing 
hydrometallurgical processes to produce nickel and cobalt products such as the 
Albion or other similar processes, which generate minimal off-gases to produce 
nickel and cobalt products. The off-gases will again be captured and treated to 
ensure CO2 and SO2 emissions are minimized.  

NetZero Metals - Magnetite Concentrate Processing

The Company will explore the potential for the production of iron products 
utilizing existing direct reduced iron (DRI) processes or reduction in electric 
arc furnaces utilizing natural gas and then re-routed to allow the CO[2] to be 
captured by the waste rock and tailings from the deposit. 

Next Steps

The Company will announce some key leadership changes at the Board level to 
help guide the Company in this important endeavour.  The NetZero approach will 
be incorporated into the work done for the engineering for the Preliminary 
Economic Assessment which has been previously announced and currently 
underway.  Specific studies to analyze the quantity and timing of CO[2] 
absorption by the host rock at Crawford and process design for downstream 
processing of nickel and cobalt materials and magnetite concentrate will be 
announced and get underway through the remainder of the year.  

[1] The Crawford Nickel-Cobalt Sulphide Project is an early stage exploration 
and development project. There is no guarantee that the project will reach 
advanced development or production stage. The economic viability and technical 
feasibility of the Company's Crawford Nickel-Cobalt Sulphide Project has not 
been established at any level of confidence supported by a PEA, PFS or FS, and 
as such there is currently no evidence to support that the project would result 
in a "net zero-carbon" footprint.  The Company is currently planning to 
complete a PEA by year-end 2020.

About Canada Nickel Company 

Canada Nickel Company Inc. is advancing the next generation of nickel-cobalt 
sulphide projects to deliver nickel and cobalt required to feed the high growth 
electric vehicle and stainless steel markets.  Canada Nickel Company has 
applied in multiple jurisdictions to trademark the terms NetZero Nickel(TM), 
NetZero Cobalt(TM), NetZero Iron(TM) and is pursuing the development of 
processes to allow the production of net zero carbon nickel, cobalt, and iron 
products. Canada Nickel provides investors with leverage to nickel and cobalt 
in low political risk jurisdictions.  Canada Nickel is currently anchored by 
its 100% owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart of 
the prolific Timmins-Cochrane mining camp. 

Cautionary Statement Concerning Forward-Looking Statements 

This press release contains certain information that may constitute 
"forward-looking information" under applicable Canadian securities legislation. 
Forward looking information includes, but is not limited to, drill results 
relating to the Crawford Nickel-Cobalt Sulphide Project, timing of economic 
studies, the potential of the Crawford Nickel-Cobalt Sulphide Project, the 
potential development of zero-carbon production of nickel, cobalt and iron, 
strategic plans, including future exploration and development results, and 
corporate and technical objectives. Forward-looking information is necessarily 
based upon a number of assumptions that, while considered reasonable, are 
subject to known and unknown risks, uncertainties, and other factors which may 
cause the actual results and future events to differ materially from those 
expressed or implied by such forward-looking information. Factors that could 
affect the outcome include, among others: future prices and the supply of 
metals, the future  demand for metals, the results of drilling, inability to 
raise the money necessary to incur the expenditures required to retain and 
advance the property, environmental liabilities (known and unknown), general 
business, economic, competitive, political and social uncertainties, results of 
exploration programs, timing of the updated resource estimate, risks of the 
mining industry, delays in obtaining governmental approvals, and failure to 
obtain regulatory or shareholder approvals. There can be no assurance that such 
information will prove to be accurate, as actual results and future events 
could differ materially from those anticipated in such information. 
Accordingly, readers should not place undue reliance on forward-looking 
information. All forward-looking information contained in this press release is 
given as of the date hereof and is based upon the opinions and estimates of 
management and information available to management as at the date hereof. 
Canada Nickel disclaims any intention or obligation to update or revise any 
forward-looking information, whether as a result of new information, future 
events or otherwise, except as required by law.

Contact: Mark Selby
         Chair and CEO
         Tel: +1-647-256-1954

SOURCE: Canada Nickel Company Inc.