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NICKEL
Characteristics
Nickel is hard and corrosion resistant and has a relatively high
melting point of 1453°C, nearly as high as that of iron. It is,
nevertheless, malleable and ductile allowing it to be readily
worked into sheets or wire. It has excellent strength and
toughness at extremes of temperature. It has low thermal and
electrical conductivities, and is capable of being magnetized
although not as strongly as iron. It is attractive and very
durable as a pure metal, and alloys readily with many other
metals.
Nickel is rarely found in the earth in its pure form, but occurs
principally as oxides, sulphides and silicates. The majority of
economic nickel deposits occur in two geological
environments. These are magmatic sulphide deposits and
lateritic deposits. Sulphide deposits may be formed during
slow crystallisation of a magma body at depth or in ancient
lava flows. The principal ore mineral is pentlandite
[(Ni,Fe)9S 8]. Nickel-bearing lateritic ores are formed by
tropical and sub-tropical surface weathering. The principal ore
minerals are nickeliferous limonite [(Fe,Ni)O(OH)] and
garnierite (a hydrous nickel silicate). Mining exploits both
sulphide and laterite ores in almost equal proportions although
laterites currently account for around 70 per cent of known
nickel deposits. The rapid development of nickeliferous pigiron
production in China has made the economic exploitation
of lower grade oxide ores possible.
Nickel ores are widespread, but the principal nickel mining
countries are Russia, Canada, Australia, Indonesia, New
Caledonia, Colombia and Brazil. Important nickel refineries
treating imported raw materials operate in Norway, Finland,
France, Japan and the United Kingdom
Nickel is normally extracted from sulphide ores using
pyrometallurgical processes (smelting) followed by
electrolytic refining. A vapometallurgical refining process is
also used. Lateritic ores may be smelted directly to ferronickel
or treated by hydrometallurgical leaching processes, using
either ammonia or acids. The newest technology is biooxidation
leach processes, with heap leaching attracting
increasing interest.
Primary nickel is marketed as nickel metal with varying
purities, and as nickel oxides. Ferronickel, with a nickel
content of 25 to 40 per cent, is an intermediate product that is
added to alloy steel melts particularly in the production of
stainless steel.
Nickel in the form of scrapped alloy steel or nickel-based alloy
is also readily recycled, and large tonnages of this secondary
nickel are used to supplement newly mined metal.
Uses
Nickel is used as pure metal only in electroplating applications
for corrosion resistance e.g. medical equipment, scissors and
cosmetic applications such as domestic fittings and vehicle
parts, giving them a hard, tarnish-resistant shiny surface. More
than 80 per cent of nickel production is combined with other
metals, especially iron, chromium and copper, to form alloys.
Nickel adds toughness, strength, rust resistance and other
electrical, magnetic and heat resistant properties. Stainless
steels containing, typically, eight to 12 per cent nickel, account
for about two-thirds of nickel consumption (International
Nickel Study Group, 2008) and are used in construction, the
chemical and food-processing industries and household
products Nickel-based high-performance alloys are critical in
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the aerospace industry. Nickel is also used in the manufacture
of rechargeable (nickel-cadmium) batteries, in computer hard
discs, in coinage, jewellery and in electrical components.
World production in 2006
Nickel mine production reached a record total of 1526
thousand tonnes in 2006, the largest producers being, in order,
Russia, Canada, Australia, Indonesia and New Caledonia.
World refined nickel production also reached a record high of
1337 thousand tonnes in 2006, an increase of four per cent on
2005 and 12 per cent over the last five years. The largest
producers were Russia, which produced 272 000 tonnes,
Canada 153 743 tonnes, Japan 149 954 tonnes, and Australia
116 000 tonnes. Japanese output was entirely based on
imported raw materials
Countries with mainly lateritic nickel resources, such as
Colombia, Indonesia and Brazil, are increasing production and
beginning to take over from the diminishing, but still
substantial, magmatic sulphide resources in Russia, Canada
and Australia.
The rise in nickel production has been driven by an increase in
consumption in Western Europe and in China in particular, to
supply its growing steel industry.
Prices
The price of nickel has experienced periods of volatility over
the last twenty years. The price decrease in the first half of the
1990s has been attributed to the economic collapse of the
former ‘Eastern Bloc’ countries which caused a surge of
nickel exports, driving down nickel prices below the cash
costs of production and resulted in reduced nickel production
in the ‘West’ (International Nickel Study Group, 2008). Until
2003 the nickel cash price remained below US$10 000 per
tonne (see figure). The price began to escalate dramatically
from November 2005, continuing throughout 2006 and into
2007, reaching an all time high in May 2007 before decreasing
by the end of the year (see graph).
The beginning of 2007 saw increasing nickel prices in
response to low stocks, and increasing demand from China for
stainless steel production. In January the news that BHP
Billiton had been forced to temporarily close some of its
Western Australian operations fed the price rises (Garvey,
2007a), and strikes at Xstrata’s Sudbury nickel works in
Canada, accompanied by dwindling stocks in the LME’s
warehouses, further fuelled price rises (Garvey, 2007b).
Supplies to the market were cut further with the cessation, in
early May, of nickel shipments from the Port of Esperance in
Western Australia while the port updated its ore-handling
equipment and environmental procedures. LionOre Mining
Ltd and Jubilee Mines NL were affected by these cuts (Mining
Journal, 2007a).
Nickel prices reached a record high of US$54 200 per tonne
on 16 May 2007 (Metal Bulletin prices), before they began to
fall as concern grew that the Chinese steel industry was
considering production cuts. This decline began prior to a
change in LME trading rules, and despite LME nickel stocks
reaching records lows, with less than two days consumption in
the stockpiles by early June (Haycock 2007a). The LME
imposed new nickel lending rules on 6 June, which stipulated
that two or more parties holding 25 per cent or more in the
market would be subject to lending restrictions. The nickel