Global nickel production is expected to grow 6.8% to reach 2,427.4 kt in 2021, after a 4.2% decline to 2,272 kt was recorded last year due to blockages and restrictions related to covid, GlobalData reports.
In its latest report, the analyst firm noted that Indonesia (+ 16.3%), the Philippines (+ 5.1%) and Brazil (+ 24%) will significantly contribute to overall growth this year. On the contrary, production is expected to decline in Russia (-13.8%) and South Africa (-15.8%).
“Co-production in Indonesia, the Philippines and Brazil is expected to grow from a combined 1160kt in 2020 to 1316.8kt in 2021 - an increase of 13.5%. The increase in production will be supported by the expansion of Indonesia's nickel industry, the resumption of production at various mines in the Philippines and a ramp-up at the Santa Rita mine in Brazil, which was previously halted in 2015, ”said Winneth Bajaj, GlobalData. junior project manager.
“Overall, Indonesia and the Philippines will remain the largest sources of nickel in the world. Together with Russia, New Caledonia and Australia, these five countries account for nearly three quarters of the global total, ”Bajaj added.
Looking ahead, nickel production is expected to grow in the forecast period with an average annual growth rate (CAGR) of 3%, reaching 2,730.6kt in 2025.
According to GlobalData, Indonesia, Russia, Canada and the Philippines will be the main contributors to this growth. Co-production in these countries is expected to increase from a projected 1607kt in 2021 to 1818.4kt in 2025.
“Projects that have the potential to start operations during the forecast period include the Araguaya nickel project in Brazil, which is wholly owned by Horizonte Minerals and is currently awaiting a Final Investment Decision (FID). The $ 402.1 million project will have a production capacity of 14.5 thousand tons of nickel per year and is expected to start work in 2022, ”Bajaj said.
“At the beginning of 2021, the infrastructure of the project, including the issuance of licenses for the construction of a power transmission line and a water pipeline, was approved by the company. Completed tenders for the supply of key equipment and services worth about $ 230 million. "
The Aquila nickel project in Indonesia, wholly owned by Solway Investment Group, has received regulatory approvals and permits. Annual nickel production for the $ 57 million project will be 16.6 thousand tonnes and is expected to begin operations in 2023.
