Australia’s nickel production is likely to grow over the next decade, according to Fitch Solutions, reported Australiamining.
Nickel production is estimated to reach 2.8mn mt by 2029 from 2.1mn mt in 2020, according to Fitch Solutions’ data.
In December, Indonesia imposed a ban on exports of Nickel ore which would result in decline of production of nickel ore by 15.4pc in 2020 from a year ago. Before the ban, global nickel ore production was estimated to grow by 1.7pc in the upcoming decade. In the 2010-2019 period, production had declined by 6.7pc.
Russia and Australia, with their increased production are likely to fill in the void in global markets caused by Indonesian nickel export ban.
At present, there are 21 new nickel projects in Australia’s pipeline which will support an average production growth of 2.1pc in the next decade, compared to 2009-2019. Australia-based IGO produced 30,708mt of nickel concentrate at its Nova mine in 2019, higher than the guidance provided.
Similarly, Glencore in Australia produced 36,000mt of nickel in 2019, up by 1100mt from the year prior. Australian BHP Group believes the electric vehicle wave would give nickel production a push. Electric vehicles would see a significant growth in production in coming years and boost the Australian nickel sector and attract more investors in the near future.