What other dynamics are affecting nickel supply? If you’re interested in getting exposure to the market, you should be aware of the factors at play. To get you started, here’s a look at the top nickel-producing countries.
Mine production: 1.8 million MT
Claiming first place for production by a long shot, Indonesia is a prime example of a country wanting to get in on the exploding market for nickel. Its output of the base metal has grown tremendously from 2017’s number of 345,000 metric tons (MT) to a whopping 1.8 million MT in 2023. Indonesia also hosts 55 million MT of nickel reserves.
Mine production: 400,000 MT
The Philippines has been one of the top nickel-producing countries for quite some time, as well as a nickel ore exporter. Another country with close proximity to China, the Philippines currently has more than 30 nickel mines, including Rio Tuba, operated by Nickel Asia, one of the nation’s top nickel ore producers. After taking a small hit between 2017 and 2018, when nickel production fell from 366,000 MT to 340,000 MT, the Philippines increased its nickel output to 420,000 MT in 2019. The upward trend was seemingly short-lived as the country continues to deal with record rainfall that has flooded mining operations. In 2022, the archipelagic country saw its nickel output slip to 345,000 MT.
Mine production: 230,000 MT
The economy of this French territory just off the coast of Australia depends heavily on the price of nickel. Although its production has decreased in recent years, dropping from 220,000 MT in 2019 to 190,000 MT in 2022, output picked up steam in 2023 to land at 230,000 MT, giving New Caledonia the third spot over Russia.
As of mid-April, the situation remained in limbo.
Mine production: 220,000 MT
Even though it holds the fourth spot on this list of the world’s top nickel producers, Russia has seen its nickel output drop in the past few years. In 2018, the nation’s nickel output totaled 272,000 MT, but it came in at 220,000 MT in 2023.
Mine production: 180,000 MT
Another key nickel producer in Canada is Glencore, which owns the Raglan mine in Québec, as well as the Sudbury Integrated Nickel Operations in Ontario. The major miner’s Sudbury site includes the Nickel Rim South mine, the Fraser mine, the Strathcona mill and the Sudbury smelter.
Mine production: 160,000 MT
Mine production: 110,000 MT
China’s key role in stainless steel production means that it also influences nickel price dynamics. This was a key factor in 2023 as Indonesia’s surplus weighed on the market, as China is a major importer of the country’s nickel.
Mine production: 89,000 MT
Mine production: 17,000 MT
After mining, nickel ore is processed into higher-grade concentrates through crushing and separating nickel-bearing material from other minerals using various physical and chemical processing methods. Next, the concentrates are smelted in a furnace before the final stage of refinement using pyrometallurgical and hydrometallurgical processes.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Canada Nickel Company is a client of the Investing News Network. This article is not paid-for content.
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