Nickel was discovered by the Swedish chemist Axel Fredrik Cronstedt in the mineral niccolite (NiAs) in 1751. Today, most nickel is obtained from the mineral pentlandite (NiS·2FeS). Most of the world's supply of nickel is mined in the Sudbury region of Ontario, Canada. It is believed that this large deposit of nickel ore is a result of an ancient meteor impact. Nickel is a hard, corrosion resistant metal.
It is a silvery-white lustrous metal with a slight golden tinge. It can be electroplated onto other metals to form a protective coating. Finely divided nickel is used as a catalyst for the hydrogenation of vegetable oils. Adding nickel to glass gives it a green color. A single kilogram of nickel can be drawn into 300 kilometers of wire. Nickel is also used to manufacture some types of coins and batteries.
Usage of nickel has increased over time and is correlated with economic development. In the past decade world nickel demand increased from 1.104 million tonnes in 2001 to 1.572 million tonnes in 2011, an annual average growth rate of 4.2%. However, the upward trend has had peaks and valleys.
The latest year 2011 saw the greatest demand for nickel but, in 2007 demand declined to 1.323 million tonnes as the global economic crisis unfolded and in 2008 demand dropped again to 1.286 million tonnes. A further decline was encountered in 2009 to 1.241 million tonnes. Demand rapidly increased in 2010 to 1.464 million tonnes, and continued improving to a record level of 1.572 million tonnes in 2011.
Asia is now by far the largest regional market for nickel representing 65% of total world demand. China alone now accounts for close to 44% of world nickel demand compared with 8% ten years earlier.
Strong world economic growth until 2007 supported rising production of primary nickel metal. In 2007 world primary production stood at 1.416 million tonnes. However, the economic crisis led to lower worldwide nickel production in the period 2008 to 2009 and production of primary metal declined to 1.32 million tonnes in the latter year. Production rapidly recovered in 2010 to 1.446 million tonnes and increased further to 1.589 million tonnes in 2011. On an annual average the growth in production between 2001 and 2011 was 3.7%.
A new product started to be produced in China in 2005 and that was Nickel Pig Iron (NPI) in different forms and grades. Production increased slowly in the first few years but in 2010 production was estimated at over 160,000 tonnes and in 2011 production could be has high as around 250,000 tonnes. Basically all of this product is used domestically in China in the production of stainless steel and has replaced traditional products like nickel metal and stainless steel scrap.
In addition to new NPI production in China, several other nickel projects around the world started during this 10 year period. Examples are Barro Alto and Onça Puma in Brazil with a combined capacity of over 100,000 tonnes per annum when in full production. In Madagascar the Ambatovy project is still under construction with a capacity of 60,000 tonnes, Myanmar will have its first nickel project in Tagaung Taung, which should start production in 2012. In New Caledonia, Vale’s Goro project has been commissioned, but is still in slow ramp up mode.