In this article, we will discuss the 5 countries with the largest nickel reserves in the world. If you want to read the detailed analysis of the industry, its future outlook, and key players, please head over to 10 Countries with the Largest Nickel Reserves in the World.
5. New Caledonia
Nickel reserves as of 2021: 7.1 million metric tonnes
New Caledonia is one of the 13 French-administered territories outside Europe. Nickel is one of its major contributors to the economy. The country’s Goro mine has one of the largest nickel reserves in the world. The deposit contains close to 6 million tonnes of metal and has the capacity to produce around 60 kilotonnes of nickel per annum. The mine’s project has seen constant delays in operations due to resistance from the indigenous residents of New Caledonia, the Kanak people. Most of the company’s nickel production is controlled by the French company, ERAMET S.A. (OTC:ERMAY).
In 2020, New Caledonia was the fourth largest producer of nickel with 200 kilotonnes produced in the year, and the country with the 5th largest nickel reserves in the world. 24% of private employment and 6% of the country’s GDP are owed to nickel production. In 2020, the country exported $538 million worth of nickel and its most significant destinations included China, South Korea, Japan, and France.
4. Russia
Nickel reserves as of 2021: 7.5 million metric tonnes
Russia is the home of OJSC MMC Norilsk Nickel (LSE:MNOD) company which is one of the world’s largest nickel mining companies. The country’s five biggest mines are Oktyabrsky Mine, Komsomolsky Mine, Taimyrsky Mine, Skalisty Mine, and Kola MMC Mine and all of them are owned by MMC Norilsk Nickel. In 2021, Russia produced 250 kilotonnes of nickel, down from its decade-high of 283 kilotonnes in 2020.
In 2021, Russia exported around $2 billion worth of nickel. The country’s nickel exports reached their peak in 2007 when it exported nickel worth approximately $9 billion which is mostly attributed to the high price of nickel in that year. Germany has been the biggest importer of Russian nickel with 39% of the country’s supply going to Germany.
Despite sanctions being imposed on Russia due to the Ukraine invasion, the Russian industrial metal sector saw little to no impact. The European Union and the United States’ aluminum and nickel imports from Russia went up by 70% between March and June quarter. The total exports from Russia amounted to $1.98 billion. The Russian nickel market is expected to produce a surplus of 75,000 tonnes by the end of 2022 and it is expected to widen to 150,000 tonnes in 2023.
3. Brazil
Nickel reserves as of 2021: 16 million metric tonnes
Brazil has secured third place in the 10 countries with the largest nickel reserves in the world and is home to one of the 10 largest nickel mines in the world, Barro Alto Mine. The mine is operated and owned by Anglo American plc (LSE:AAL.L). In 2021, the mine production was around 35.2 thousand tonnes and it is expected to dry out by 2040. The country’s total nickel mine production in 2021 was 100,000 metric tonnes. Brazil mine in Piauí owned by TechMet Limited is set to receive $30 million as per the announcement by Biden’s administration in November 2022. The investment will allow nickel mining that is done sustainably while moving away from China-dominated supply chains.
2. Australia
Nickel reserves as of 2021: 21 million metric tonnes
According to the U.S. Geological Survey of Mineral Commodity Summaries 2022, Australia also has 21 million metric tonnes of nickel in reserve. However, its production levels in 2021 were visibly below that of Indonesia’s at 160,000 metric tonnes. Accounting for more than 20% of the world’s nickel reserves, nickel exports boosted the Australian economy by $4.4 billion in 2021.
Earnings from nickel export are expected to grow by 17% to $5.1 billion between 2022 to 2023 but they will dip by 11% between 2023 to 2024. Meanwhile, the Australian export of nickel is forecasted to rise to 188,000 tonnes from 2023 to 2024, up from the figures of 157,000 tonnes in 2021-2022. The increase in the export would come from Mallee Resources Limited (ASX:MYL)’s Avebury mine at 8,100 tonnes and Mincor Resources NL (ASX:MCR)’s nickel mining project in Kambalda at 12,600 tonnes.
1. Indonesia
Nickel reserves as of 2021: 21 million metric tonnes
Indonesia is one of the top 10 countries with the largest nickel reserves in the world as it had 21 million metric tonnes of nickel reserves in 2021. Unsurprisingly, the country is also the top nickel-producing country in the world at 1 million metric tonnes, a noticeable increase from its production figures of 771,000 metric tonnes in 2020. Housing around 22% of the global nickel reserves, Indonesia used to be the biggest exporter but it banned the export of nickel ores in 2020. The reasoning was to attract foreign investment in the country and has been successful to a certain extent as many Chinese companies, often in joint ventures with Indonesian corporations, have started investment projects to produce mixed hydroxide precipitate for EV battery production.
The Indonesian government has been making efforts to restrict the production of downstream materials to become a major player in the supply chains for products, especially electric vehicle batteries. As per the International Nickel Study Group, the country’s nickel production saw a growth of 41% YoY from January to July 2022. According to a report by GlobalData, a CAGR of more than 2% in production is expected from Indonesian nickel mining between 2021 to 2025.
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