Global nickel production likely to grow by 6.8% in 2021

Global nickel mine production is expected to grow by 6.8% to reach 2.42 million t in 2021, after registering an estimated 4.2% decline to 2.27 million t in 2020, owing to COVID-19-related lockdowns and restrictions, says GlobalData.

The data and analytics company notes that output from Indonesia (16.3%), the Philippines (5.1%) and Brazil (24%) will be significant contributors to the overall growth this year. In contrast, production is expected to decline in Russia (-13.8%) and South Africa (-15.8%).

Looking ahead, nickel production over the forecast period is expected to grow at a compound annual growth rate (CAGR) of 3%, to reach 2.73 million t in 2025. Indonesia, Russia, Canada, and the Philippines will be the key contributors to this growth. Combined production in these countries is expected to increase from a forecasted 1.60 million t in 2021 to 1.81 million t in 2025.

The Aquila Nickel project in Indonesia has obtained its regulatory approvals and permissions. The USD 57M project will have an annual nickel production capacity of 16 600 t and is expected to commence operations in 2023.