Fortescue Metals’ Forrest Turns Sights to Nickel

The Wall Street Journal reported that Andrew Forrest, founder and chairman of Fortescue Metals Group Ltd. (ASX:FMG), the world’s fourth-largest producer of iron ore, is now turning his attention to nickel via a 32-percent stake in Australia’s Poseidon Nickel Ltd. (ASX:POS).

As quoted in the market news:

For Mr. Forrest, Poseidon Nickel is a bet worth taking; even if it reinforces public perception of him as a risk-taker, a reputation he thinks is unfair. Much of the land around the Windarra deposits is untapped and he predicts the price of nickel will rebound in the long term.

Poseidon Nickel aims to restart a mine at the Windarra site capable of mining the commodity for at least a decade. The company–valued around A$40 million–is working to secure more debt to restart production, estimating as much as 80,200 tons of nickel metal remains to be dug up.

‘The technical capability of the metal is profound,’ said Mr. Forrest in an interview. ‘The number of things it can do from turning iron to stainless steel, to its capability of almost being able to heal itself, to its ability to store energy, makes it an exceptional metal.’

Click here to read the full report from The Wall Street Journal.