Finnish stainless steel producer Outokumpu has agreed to invest EUR 11 million in Canadian mining and development company FPX Nickel to help decarbonise 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 carbon footprint in the nickel industry, and can be readily 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 decarbonise the product, which will require a reduction in supply chain emissions.
According to FPX Nickel's preliminary economic assessment for 2020, the Baptiste project has the potential to produce up to 44,900 tonnes of nickel per year over a projected mine life of 35 years.
As part of the €11 million investment, Outokumpu will own approximately 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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