“Non-ferrous metals” Journal, Moscow, Russia

S. I. Korneev, Expert, e-mail: int4479237@yandex.ru

Total capacity of new large mining-and-metallurgical integrated projects (Voisey’s Bay-Long Harbour (Canada), Vale New Caledonia and Koniambo (New Caledonia), Onca Puma and Barro Alto (Brazil), Tiguang Nickel Ore Project (Myanmar), Ambatovy (Madagascar)) is near 350.0 th. t of primary nickel. In spite of peculiar risks, attainment of production capacity of these projects is the determinant factor of formation of fundamental aspects of modern world nickel market in mediumterm prospect, together with growing manufacturing of nickelbearing products in China. Nickel output on the foregoing new projects can reach 312.0 th. t by 2016. China’s import of laterite ores (basically from Indonesia and Philippines) for manufacturing of nickel-bearing products (low-grade/highgrade nickel-bearing pig iron, ferronickel) has changed from 1.0 mln. t in 2005 to 62.5 mln. t in 2012 (near 450.0 th. t of primary nickel). Constant improvement of the production process — RKEF technology — is carried out by manufacturers of nickel-bearing products in China. The distinguishing feature of manufacturing of nickel-bearing products in China is rather high level of integration with local manufacturers of stainless and special steels, which essentially intensifies the competition between foreign nickel manufacturers in this sector on Chinese market. Nowadays, dynamically developing manufacturing of nickel-bearing products is focused on Chinese domestic market. Nevertheless, this manufacturing makes a significant influence on formation of the global cost of manufacturing of world nickel industry and, and as consequence, on LME quotations. Unexampled potential of increase of nickel manufacturing in medium-term prospect (till 2016) makes the world market balance steady surplus. Carrying out of closely control of production costs and finding the ways of their decreasing (due to improvement of technological process, corporate synergy and M&A) are realized by nickel manufacturers under the direction of the current low level of LME quotations, crucial dependence of the world nickel market from the state of affairs in China, upcoming new nickel projects and increasing LME stocks.

1. Statistics. International Nickel Study Group. Available at : http://www.insg.org/stats.aspx
2. INSG. Press release. April 13. Available at : http://www.insg.org/docs/INSG_Press_Release_April_13.pdf
3. Mine and Concentrator. Voiseys bay development. Available at : http://vinl.valeinco.com/OperationsMineConcentrator.asp
4. Delivering value through capital efficiency. Annual report 2012. Available at : http://www.vale.com/EN/investors/Quarterly-results-reports/20F/20FDocs/20F_2012_i.pdf
5. Voisey’s bay nickel company project description and project registration for a commercial processing plant. Available at : http://vinl.valeinco.com/PDFs/CommercialProcessingPlantRegistration.pdf
6. Nickel. Vale. Available at : http://www.vale.com/EN/business/mining/nickel/Pages/default.aspx
7. Vale day. New York 2012. Available at : http://www.vale.com/EN/investors/Presentation-webcasts/Presentations/PresentationDocs/2012ValeDay_New_York.pdf
8. Vale in New Caledonia. Available at : http://www.vale.nc/homepage/who-are-we/vale-new-caledonia
9. About Vale. Available at : http://www.vale.com/canada/en/aboutvale/across-world/pages/default.aspx
10. Vale starts nickel production at Onça Puma. Available at : http://www.vale.com/australia/EN/investors/home-press-releases/press-releases/Pages/vale-inicia-a-producao-de-niquel-em-Onca-Puma.aspx
11. Vale is concluding the commissioning of the New Caledonia and Onça Puma projects. Available at : http://www.vale.com/indonesia/EN/investors/home-press-releases/press-releases/Pages/vale-esta-concluindo-o-comissionamento-dos-projetos-nova-caledonia-e-onca-puma.aspx
12. Operations map. GlencoreXstrata. Available at : http://www.glencorexstrata.com/our-business/operations-map/
13. Press release. Sherritt reports second — quarter 2012 results. Available at : http://www.sherritt.com/getattachment/abdc3729-0d05-42cd-af2b-00d430b5291c/Q2-2012-Quarterly-Report
14. Metals — Ambatovy Joint Venture. Sherritt International. Available at : http://www.sherritt.com/Operations/Metals/Ambatovy-Joint-Venture
15. Overview. Ambatovy. Available at : http://www.ambatovy.com/docs/?p=110
16. Search Results. Anglo American. Available at : http://www.angloamerican.com/siteservices/search/search-results?query=barro%20alto&lang=en&SearchDisplay=Search
17. Barro alto. Anglo American. Available at : http://www.angloamerican.com/~/media/files/a/anglo-american-plc/media/angloamerican_fs_barro%20alto_2012_print.pdf
18. Deposit Description. Porter GeoConsultancy. Available at : http://www.portergeo.com.au/database/mineinfo.asp?mineid=mn1371
19. China Taiyuan says to invest in CNMCs Myanmar nickel project. Reuters. Available at : http://www.reuters.com/article/2010/08/02/cnmc-tisco-nickel-idUSTOE67107W20100802
20. Indonesian Nickel Ore. Lateric nikel ore. Available at : http://www.nickelore.net/Suppliers.asp?/450.do
21. Nickel ore shipments to China. Available at : http://www.insg.org/docs/INSG_Insight_16_Nickel_Ore_2012.pdf
22. The nickel outlook Oversupply near term but medium term challenges remain. Available at : http://www.insg.org/presents/Mr_Lennon_Oct12.pdf
23. NBM Production By Smelting Lateritic Nickel Ore. Available at : http://www.insg.org/presents/Mr_Wu_Oct12.pdf
24. Nickel Monthly. Antaike. Available at : http://www.antaike.com/uploadfiles/20120619/2012061915504164810.pdf