Glenbrook Nickel – Can New Caledonian Ore Save the Only US Nickel Producer?

The only nickel smelter and the only active nickel mine in the United States is Glenbrook Nickel Co., a joint venture (50% each) of Cominco Resources International Ltd. and Cominco Ltd. In 1989, with the nickel price riding high between $2.30 and $2.70/kg ($5 and $6/lb), Glenbrook seized the opportunity to purchase and recommission a southwestern Oregon ferronickel smelter and the adjacent nickel-ore mine. This Douglas County site is only about 97 km (60 miles) due east of the Pacific Ocean, and California's border lies a similar distance to the south. Hanna Mining Co. had closed the operation in 1987. And the following year, the equipment had been largely stripped for salvage value. From November 1990 through August 1992, the mine supplied an average 5 kt/d (5500 wet stpd) of ore. Currently, with import ore supplying 40% of the smelter feed, the mine's daily tonnage averages 4.2 kt (4600 wet st). From November 1990 through August 1993, the mine has delivered 2.1 Mt (2.3 million st) of ore grading 1.22% nickel with an average moisture content of 26%. Buffaloed nickel? A nickel is not worth what it was in 1989 and neither is ferronickel, with recent prices hovering around $1.13/kg ($2.50/lb). To survive, Glenbrook has focused on increasing smelter production to lower its operating costs. And this strategy has triggered several bold moves: • a new, $30 million, port facility and • a 10-year importation contract for ore from New Caledonia, an island approximately 1000 km (625 miles) east of Australia. For a Glenbrook update, a May 25, 1993 visit was made to the company's Oregon operations - the mine and smelter near Riddle plus its new Coos Bay port facility. Unfortunately, as the rain came down that day, so did news of another temporary shutdown. The previous suspension had lasted from Dec. 20, 1992 until Feb. 22, 1993. Barely three months back to work on a wet May afternoon, more than 250 of Glenbrook's approximately 300 employees contemplated yet another shutdown, effective July 31, 1993.