10 Biggest Nickel Mining Companies in the World

Published on January 3, 2023 at 5:50 pm by Affan Mir in Lists, News

In this article, we discuss the 10 biggest nickel mining companies in the world. To skip the industry analysis, you can go directly to the 5 Biggest Nickel Mining Companies in the World.

Nickel production started globally in 1824 through cobalt blue production while the first large-scale production began in 1848 in Norway. The demand for nickel increased in the late 19th century and its production started to make progress in the early 20th century with the discovery of the metal in Canada, Russia, and South Africa. Currently, Indonesia is the country with the largest nickel reserves at 21 million metric tons out of the global 95 million metric tons of reserves (1 ton = 2000 pounds, 1 tonne, or metric ton = 2,240 pounds).

Significance in the EV market and Other Uses

The first common use of nickel was to make coins. However, it is fast becoming one of the most important components in EV batteries. According to BHP Group Limited (NYSE:BHP), the demand for nickel will increase 4x in the next 30 years due to the rise of the EV industry. The company’s 85% of the nickel sulfate production is used in batteries. According to a Reuters report, there is enough lithium and nickel to power 14 million EV batteries in 2023 and the number is expected to reach 21 million EVs globally by 2025. Between 2021 and 2030, the global EV market is expected to show a CAGR of 18.2% and reach $823.75 billion by 2030. Global EV sales were recorded at 2 million in 2020, which increased by over 100% to 4.2 million in 2021.

Apart from the EV industry, the aerospace and defense industry is another prospect for nickel market growth. Nickel alloys are used by the aerospace and defense industry for turbines of jet engines, exhaust valves, thermostat valves, tanks, and piping due to nickel’s heat-resistant nature and metal integrity.

The most common use of nickel is in stainless steel production. Over 66% of the global nickel ore is used to produce stainless steel for kitchen equipment, chemical industries, metallurgy, and several other industries.

Nickel Market History, Growth, and Future

Nickel reached its peak per tonne price in April 2007 at $50,000 mainly due to low inventory levels. After its 2007 peak, the industry saw a decline over the years to approximately $8,100 in May 2016. In the current year, the metal peaked at $48,000 in March before recording the lowest level of $21,100 in September. Currently, Nickel is trading at $30,234. In March 2022, the metal price went up to $100,000 for a few moments, which will be discussed later.

The average nickel price in the first three quarters of 2022 was $25,684 per tonne which was 43% higher than in the same period of 2021. In addition, at the end of September, the nickel stocks on London Metal Exchange and the Shanghai Futures Exchange amounted to 55,080 tonnes, compared to 161,570 tonnes at the end of September 2021.

According to Fortune Business Insights, the global nickel market was worth $33.31 billion in 2020 and is expected to reach $59.14 billion by 2028, growing at a CAGR of 7.3% during the forecast period. According to the report, stainless steel used by the automotive, consumer goods, and construction industries will be the primary growth driver for the metal’s price and demand.

Some of the biggest nickel mining companies include OJSC MMC Norilsk Nickel (LSE:MNOD), Vale S.A. (NYSE:VALE), and Glencore plc (OTC:GLNCY).

Chaos in March

On March 8, the nickel prices surged by 66% within a day to $48,078 at 5:42 am. Later on, the prices saw a sudden surge of 250% to over $100,000 per tonne around 6 a.m. The main reason for this sudden price hike was the Russian invasion of Ukraine. The prices spread mayhem in the market as there was a giant short position held by Xiang Guangda, the founder of Tsingshan Holding Group.

The Russian invasion led to sanctions on the country which spread the fear that the world’s third-largest producer’s nickel might be banned in Europe, causing the supply deficit to be much greater than the demand.

The short position held by Xiang Guanda led him to hot waters as his firm had to pay $10 billion due to margin calls. However, to curb the situation, the London Metal Exchange stopped the trade for a couple of hours which brought the price back to $48,000 per tonne levels.

10 Biggest Nickel Mining Companies in the World

Pixabay/Public Domain

Our Methodology

After an assessment of the nickel industry and the biggest nickel mining companies, we chose the 10 biggest nickel mining companies. The companies were chosen based on their production at the end of 2021. The production figures of each company were taken from the company’s 2021 annual report.

10 Biggest Nickel Mining Companies in the World

10. Metallurgical Corporation of China Ltd. (OTC:MLLUY)

Production in 2021: 26.35 Kilotonnes (estimated 85% production from the Ramu Nico project)

Metallurgical Corporation of China Ltd. (OTC:MLLUY) is a Chinese engineering and construction company. The company has global operations in engineering contracting, property development, equipment manufacture, and resource development. The company’s nickel and cobalt project is handled through its subsidiary, Ramu Nico Management (MCC) Limited. The firm owns 85% of the Ramu Nico project in Papua New Guinea. Furthermore, Metallurgical Corporation of China Ltd. (OTC:MLLUY) also operates several mining projects in Pakistan and Afghanistan, including Saindak Copper-Gold Mine Project, Duddar Lead-Zinc Mine Project, and Aynak Copper Mine Project.

Metallurgical Corporation of China Ltd. (OTC:MLLUY)’s Ramu Nickel-Cobalt Project is also owned by Mineral Resources Madang Limited (2.5%), Mineral Resources Ramu Limited (3.94%), and Highland Pacific Ltd (8.56%). The project’s annual nickel production is around 31,000 tonnes and cobalt production is estimated to be 3,000 tonnes. As of January 1, 2021, the Ramu Nico project has 12 years of mine life remaining and is one of the lowest-cost integrated nickel mines in the world.

At the end of 2021, Metallurgical Corporation of China Ltd. (OTC:MLLUY)’s Ramu Nico project was estimated to have 156 million tonnes of resources. The average nickel grade stood at 0.85% amounting to 1.32 million tonnes of the metal. The average cobalt grade was recorded at 0.09% amounting to 140 kilotonnes.

OJSC MMC Norilsk Nickel (LSE:MNOD), Vale S.A. (NYSE:VALE), and Glencore plc (OTC:GLNCY) are some of the biggest nickel mining companies along with Metallurgical Corporation of China Ltd. (OTC:MLLUY).

9. Terrafame

Production in 2021: 28.7 Kilotonnes

Terrafame is a metals and mining company established by the Finnish government. The company focuses on environmentally sustainable bioleaching technology to conduct its mining operations. The method uses living organisms to extract metals and minerals from their ores. Galena Asset Management is Terrafame’s primary investment subsidiary and manages around 70% of the company’s assets.

Apart from mining, Terrafame also produces battery chemicals and the company claims that its battery metals have the lowest carbon footprint. The company opened one of the world’s largest battery chemical plants in 2021 at the cost of €240 million.

Terrafame produces nickel sulfate mainly for electric vehicles and can produce nickel for at least 1 million cars annually. In 2021, the company produced 28.7 kilotonnes of nickel, down 60 basis points from the prior year, making it the 9th biggest nickel mining company in the world. The company’s flagship Talvivaara mine was acquired by the company in 2015 and has 1 billion tonnes of reserves and contains 5 million tonnes of zinc, 2.2 million tonnes of nickel, and 1.3 million tonnes of copper along with traces of cobalt. Terrafame’s Talvivaara is considered Europe’s largest mine deposit.

8. IGO Limited (ASX:IGO.AX)

Production in 2021: 29 Kilotonnes

IGO Limited (ASX:IGO.AX) is an Australian mining company. The company produces all of its nickel from the Nova nickel-copper-cobalt project in Western Australia. The company also produces gold from its Tropicana Joint Venture where the company has a 30% share. In July 2021, the company announced the plans to acquire the Silver Knight nickel-copper-cobalt sulfide deposit.

IGO Limited (ASX:IGO.AX)’s financial year ends in June of each year. The company generated revenue of $472.856 million from its nickel operation in 2021 after producing 29 kilotonnes of base metal. The total revenue for the whole year was recorded at $912.098 million. On the other hand, in 2021, the total nickel production decreased to 26.675 kilotonnes and was in the company’s guidance range of 25 to 27 kilotonnes. The company provided an optimistic guidance range for FY 2023, between 34 to 39.5 kilotonnes, which might move it one spot ahead among the biggest nickel mining companies in the world in 2023.

On December 31, 2021, IGO Limited (ASX:IGO.AX) main nickel project, Nova, had 5 years of mine life remaining. The total reserves were estimated to be 123 kilotonnes. Furthermore, the company’s Nova mine is expected to stay offline for several weeks from December 5 due to a fire incident at the operation’s diesel engine room.

7. South32 Limited (OTC:SOUHY)

Production in 2021: 34.1 Kilotonnes

South32 Limited (OTC:SOUHY) is a mining, smelting, and refining company operating out of Western Australia. The company has operations and investments in seven countries across the world. The company produces nickel, copper, molybdenum, gold, silver, lead, manganese, alumina, aluminum, metallurgical coal, bauxite, and zinc. Its nickel operations are concentrated in the Cerro Matoso mine in Colombia which makes it one of the biggest nickel mining companies in the world.

South32 Limited (OTC:SOUHY) produced 34.1 kilotonnes of nickel in 2021 and made payable nickel sales of 33.5 kilotonnes. Due to a furnace refurbishment, the company’s production dropped by 16% from the previous year. However, South32 Limited (OTC:SOUHY) posted its 2022 annual reports in July where it recorded a 22% increase in nickel production to 41.7 kilotonnes. Moreover, the realized sales price per pound also increased from $6.68 in 2021 to $10.08 in 2022.

South32 Limited (OTC:SOUHY) expects its 2023 production to be around 43.5 kilotonnes, a 4% increase from 2022 levels. The Cerro Matoso mine has an estimated 7 years of mine life, with around 300,000 tonnes of nickel reserves.

6. ERAMET S.A. (OTC:ERMAY)

Production in 2021: 39 Kilotonnes

ERAMET S.A. (OTC:ERMAY) is a French metals and mining company. The company mines and extracts nickel, steel alloys, and manganese. The company’s nickel production is looked over by its subsidiary, Société Le Nickel (SLN), which has been mining the metal for over a hundred years. ERAMET S.A. (OTC:ERMAY) produces nickel from five mines in New Caledonia, primarily to make stainless steel. The new Caledonia deposits were discovered in 1865 and had most of the global nickel supply between 1875 and 1915.

ERAMET S.A. (OTC:ERMAY) produced 39 kilotonnes of ferronickel through its SLN operations, representing an 18% decrease from 2020’s production of 47.8 kilotonnes. Furthermore, the company’s total mining production increased by 75% in 2021, compared to the prior year. According to its 2021 report, ERAMET S.A. (OTC:ERMAY) expected its production to be greater than 45 kilotonnes. However, due to bad weather conditions and disruption of electricity supply, the company revised its FY2022 production outlook to 40 kilotonnes of ferronickel in the third quarter of 2022.

In the third quarter, ERAMET S.A. (OTC:ERMAY)’s marketable nickel ore production increased by 9% and external sales increased by 23% from its Weda Bay operations. Nonetheless, New Caledonia’s production decreased by 13% in the same quarter.

Just like OJSC MMC Norilsk Nickel (LSE:MNOD), Vale S.A. (NYSE:VALE), and Glencore plc (OTC:GLNCY), ERAMET S.A. (OTC:ERMAY) is also one of the biggest nickel mining companies in the world.

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