In this article, we discuss the 10 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.
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.
5. Anglo American plc (OTC:NGLOY)
Production in 2021: 41.7 Kilotonnes
Anglo American plc (OTC:NGLOY) is a British metals and mining company. It is one of the biggest nickel mining companies in the world and the world’s largest platinum producer. It provides around 40% of the global platinum.
In the first half of 2022, Anglo American plc (OTC:NGLOY) produced 20 kilotonnes of nickel and expects its 2022 production to be in line with the previous year between the range of 40 to 42 kilotonnes. The company produces two types of nickel. Its assets in Brazil produce ferronickel and South African operations produce nickel sulfate as a by-product.
Anglo American plc (OTC:NGLOY) produced 41.7 kilotonnes of nickel in 2021. The base metal generated a revenue of $710 million for the company, compared to $534 million in 2020. The company owns 100% of the mines of Barro Alto and Niquelândia. Both of them have a combined Run-of-Mine of 54.2 million tonnes. The Barro Alto has a 20-year mine life left while Niquelândia is expected to exhaust in 13 years.
4. BHP Group Limited (NYSE:BHP)
Production in 2021: 89 Kilotonnes
BHP Group Limited (NYSE:BHP) is an Australian metals and mining company that also produces natural gas and petroleum products. It is the largest mining company in the world by market capitalization.
BHP Group Limited (NYSE:BHP) produced 89 kilotonnes of nickel in 2021. The company’s nickel production has seen a decline over the years. It produced 176.2 kilotonnes of nickel in 2010 which declined by almost 60% in 2021. In the September quarter, BHP Group Limited (NYSE:BHP) produced 20.7 kilotonnes of nickel, showing a 16% increase from the previous year’s September quarter. BHP Group Limited (NYSE:BHP) also provided its full-year 2023 production guidance which is between 80 to 90 kilotonnes.
According to our database, Fisher Asset Management was the largest shareholder of BHP Group Limited (NYSE:BHP) in the third quarter of 2022. The firm owned 17.6 million company shares, worth $881.244 million.
3. Glencore plc (OTC:GLNCY)
Production in 2021: 102.3 Kilotonnes
Glencore plc (OTC:GLNCY) is a Swiss metals and mining company and commodity trading company. It is one of the largest companies in the world. The company also produces agriculture products and has a specific headquarter in the Netherlands.
In 2021, Glencore plc (OTC:GLNCY) produced 102.3 kilotonnes of nickel, down 7% from 2020. The production was affected due to the maintenance shutdown of the Murrin Murrin mines. Moreover, in the first half of 2022, Glencore plc (OTC:GLNCY) produced 57,800 kilotonnes of nickel, a 21% increase from the same period in 2021.
Glencore plc (OTC:GLNCY)’s full-year nickel production guidance remains between the range of 113 to 123 kilotonnes.
2. Vale S.A. (NYSE:VALE)
Production in 2021: 168 Kilotonnes
Vale S.A. (NYSE:VALE) is a Brazilian multinational metals and mining company. Its one of the largest nickel and iron producers in the world and also produces manganese, ferroalloys, copper, bauxite, potash, kaolin, and cobalt. Furthermore, the company operates nine hydroelectricity plants and is the largest logistics operator in Brazil.
In 2021, Vale S.A. (NYSE:VALE) produced 168 kilotonnes of nickel from its mines in Canada, Brazil, and Indonesia and grabbed the second spot among the largest nickel mining companies in the world. In the third quarter of 2022, the company produced 51,800 tonnes of nickel, representing a 71.5% increase year-over-year. However, the company’s revenues from nickel dropped in the quarter as the average realized price tonne dropped to $21,672 from $26,221 in the first quarter.
Vale S.A. (NYSE:VALE) expects its FY 2022 nickel production to be between 175 to 190 kilotonnes. Moreover, the company is working on initiating two new projects by 2025 that have a per annum capacity of 85 to 88 kilotonnes. Vale S.A. (NYSE:VALE) expects its nickel production to surpass 300 kilotonnes by 2030.
1. OJSC MMC Norilsk Nickel (LSE:MNOD)
Production in 2021: 193 Kilotonnes
OJSC MMC Norilsk Nickel (LSE:MNOD) is a Russian mining and smelting company and is the world’s largest nickel mining company. Its main products include nickel and palladium. The company also mines copper, gold, silver, and platinum along with a few other metals. The company’s most significant production comes from its Siberian mine located in Norilsk and Talnakh. OJSC MMC Norilsk Nickel (LSE:MNOD) also has operations in Russia, Finland, and South Africa.
In 2021, NickelOJSC MMC Norilsk Nickel (LSE:MNOD) produced 193 kilotonnes of nickel. Moreover, the company was responsible for 17% of the global high-grade nickel production and 6% of primary nickel. OJSC MMC Norilsk Nickel (LSE:MNOD)’s proven and probable reserves amount to 8.7 million tonnes while the measured and indicated resources are expected to be 13.5 million tonnes.
For FY2022, OJSC MMC Norilsk Nickel (LSE:MNOD) guided its nickel production to be in the range of 205 to 215 kilotonnes and expects a nickel surplus of 103 kilotonnes in 2023, due to new production capacity in Indonesia.
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Disclosure: None. 10 Biggest Nickel Mining Companies in the World is originally published on Insider Monkey.
