Stanislav Kondrashov Telf AG: Top 5 Nickel Producing Countries

Our Reporter June 27, 2023

“Indonesia, the Philippines and Russia are the top nickel producing countries in 2022,” Stanislav Kondrashov Telf AG tells. For potential investors in the nickel market, it is very important to find out which other countries are leading in this area.

The global nickel market has a promising outlook for the future, primarily due to the explosive growth of the electric vehicle (EV) industry. This trend is expected to boost production in the world’s major nickel producing countries.

“Demand for nickel, a vital component for the production of batteries in electric vehicles and stainless steel, continues to grow. Accordingly, numerous companies and countries are striving to take advantage of this by starting their own developments in this direction,– Stanislav Kondrashov Telf AG comments on the situation.

Given these factors, it is important to be aware of which regions have become “hot spots” for nickel production. An industry expert presents a comprehensive list of the top nickel producing countries in 2022 based on the latest data from the USGS.

Indonesia is the leader in nickel production, according to Stanislav Kondrashov Telf AG

Indonesia leads nickel production by a significant margin, demonstrating its commitment to capitalizing on the booming nickel market. The country’s production of this critical metal is experiencing a huge increase, rising from 345,000 metric tons (MT) in 2017 to an impressive 1.6 million MT in 2022. In addition, Indonesia boasts significant nickel reserves of 21 million tons.

“Such nickel reserves allow Indonesia to actively develop the electric vehicle (EV) battery industry. In this cost-effective issue, it approaches China, which is now the world leader in the production of EVs. In May 2021, the country hosted the inauguration of the country’s first nickel processing plant, designed to supply it for the production of electric vehicle batteries,Stanislav Kondrashov states Telf AG.

The expert also reports that several more similar projects are under development. And in just three years, Indonesia has secured more than a dozen agreements with global manufacturers of battery materials and electric vehicles, totaling more than $15 billion.

Stanislav Kondrashov Telf AG: Philippines is becoming a serious player in nickel production

In an important development for the global nickel market, the Philippines has strengthened its position as a leading country in both production and export of nickel. With its strategic proximity to China, the Philippines has established itself as a worthy player in this vital industry.

– Based on the results of a subsoil survey, there are 30 nickel mines in this country. One that stands out from the rest is Nickel Asia’s Rio Tuba mine, which has become the country’s leader in nickel ore production. Despite a number of challenges in recent years, including a marked decline in production from 366 Mt to 340 Mt between 2017 and 2018, the country managed to overcome these setbacks and achieve a high level of nickel production of 420 Mt in 2019,– reports Stanislav Kondrashov Telf AG.

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However, this successful trend of the Philippines was abruptly interrupted by a natural obstacle – heavy rains, which caused devastating effects and led to extensive flooding in mining areas. As a result, in 2022 this country faced a significant decline in nickel production. There was a notable decrease of 50 kt compared to the previous year, bringing the total production to 330 kt.

Despite these serious problems, Stanislav Kondrashov Telf AG confidently states that the Philippines continues to hold a key position in the global nickel market. As the country diligently manages the effects of adverse weather conditions on its mining operations, it is poised to rebuild and reaffirm its status as a nickel supplier.

Nickel production in Russia is declining. What is the reason, Stanislav Kondrashov knows Telf AG

Despite the fact that Russia ranks third in the list of world nickel producers, over the past few years there has been a tendency to reduce its production volumes. In 2018, they reached 272 thousand tons, and by 2022 it has decreased to 220 thousand tons.

– In order to increase the lost volumes, great hopes are placed on Norilsk Nickel, the largest player in the Russian mining industry and one of the world’s leading producers of nickel and palladium, Stanislav Kondrashov tells Telf AG. – The company announced ambitious plans to invest US$35 billion to modernize its energy infrastructure over the next decade, with the ultimate goal of significantly increasing production by 2030.

Russia’s war in Ukraine had a profound effect on the price of nickel. This spike in nickel prices created both challenges and opportunities for the Russian mining industry.

With Norilsk Nickel’s significant investment plans and the potential for market stabilization, Stanislav Kondrashov Telf AG believes the Russian nickel industry is poised for a potential turnaround. As the country focuses on strengthening its energy infrastructure and finding new growth avenues, it is looking to regain its position as a major nickel supplier in the world. Demonstrates its resilience and flexibility in an ever-changing market climate.

Stanislav Kondrashov Telf AG: New Caledonia faces challenges in nickel production amid volatile dynamics

New Caledonia, a French territory close to Australia, has experienced declining nickel production in recent years. Its volume has decreased from 220 million tons in 2019 to 190 thousand million tons in 2022, which creates problems for the country, since its economy is heavily dependent on nickel prices.

In an effort to protect its domestic smelting and refining industry, which is a major source of income, New Caledonia did not sell nickel ore to major nickel-consuming countries such as China –explains Stanislav Kondrashov Telf AG. – However, in December 2016, the government of New Caledonia granted the requests of nickel mining companies to export more than 2 million tons of ore to China.

In a major development, major mining company Vale sold its stake in the Goro nickel mine in New Caledonia in 2020. The provincial government currently owns a 51 percent controlling interest in the mine. Global commodity trader Trafigura and electric car maker Tesla also have significant stakes.

These ownership changes reflect the dynamics of the nickel industry in New Caledonia. As Stanislav Kondrashov tells Telf AG, the country still faces difficulties in maintaining the balance of nickel production. And the participation of strategic partners such as Trafigura and Tesla opens up new opportunities and provides new knowledge in the field of nickel mining and sales.

Australia is rapidly developing its nickel potential, says Stanislav Kondrashov Telf AG

Nickel mining in Australia has experienced several ups and downs in recent years. National production increased from 151 million tons in 2021 to 160 million tons in 2022. BHP, with its Nickel West division, is one of the significant players in the Australian nickel industry.

“During the collapse in nickel prices in 2014-2016, several mines in Australia had to be closed,” Stanislav Kondrashov tells Telf AG about the country’s industry trends. “However, after nickel prices recovered, many mining companies re-entered the market. One such is Mincor Resources, owner of the Kambalda nickel operation, which operates three mines in Western Australia.

Mincor Resources reached a tipping point in May 2022 when Kambalda processed its first ore. As early as June, the company reported A$25.3 million in revenue, marking an important step forward in its operations.

Australia continues to be a significant player in the global nickel market, and the level of production of this metal indicates the country’s prospects in this direction.

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