Sherritt International Corp (Toronto-based diversified int’l mining co.) will acquire a controlling stake in the Sulawesi nickel project in Indonesia from Rio Tinto Ltd. (RIO) for an undisclosed amount.

The outlook for the nickel market is “strong” on the back of growing stainless steel consumption, currently limited supply and the risk attached to new projects, Macquarie Group Ltd. said.

Nickel can be produced from either sulphides or laterite ore. About 72% of the world’s nickel resources are laterites found mainly in tropical locales such as Indonesia, Cuba, Brazil and New Caledonia.