Metal suppliers Power Supply and Demand Inc. has sold $12 million in nickel and copper to build a plant that will use a new kind of metal, according to its filing with the Securities and Exchange Commission.
The transaction was approved in February.
“The acquisition of nickel and/or copper provides a significant boost to the company’s nickel and iron supply mix and a significant increase in its nickel supply to the market,” the filing said.
The nickel-nickel agreement, which will be completed by July 2019, will also help the company “to provide a better price-performance ratio for nickel and silver products.”
The company said in the filing that the nickel-coal purchase will boost its nickel and aluminum production by more than half and that it expects that it will increase its nickel-copper production by about 30% this year.
Power Supply said the deal includes a $6.5 million deposit for copper production and the $4 million payment for copper supply.
The company plans to purchase an additional $2.2 million of nickel from an existing copper supplier.
It also said it will sell nickel from a new nickel-steel plant to be constructed in Nevada.