Chapter 2 - Nickel Production, Price, and Extraction Costs

Abstract

This chapter deals with production of nickel, the costs involved, its pricing and its major uses. Nickel was first identified in 1751 by Alex Cronstedr. In 1857, the United States was significant in introducing a one cent coin made of copper and nickel alloy. In the twentieth and twenty-first century, due to rapid industrialization, the use of nickel rapidly grew, mainly for producing stainless steel. As an alloying ingredient, it is corrosion resistant and has other attractive properties. Nickel is found in various parts of world which has been outlined in a table. Russia is the major producer of nickel followed by Indonesia, Australia, Canada and the Philippines. The overall price of nickel has been increasing since 2000. The cost of nickel extraction detailed here is quite accurate which can be used for feasibility of projects before commencement. Nickel production plants are usually near the mines. Investment costs of mines vary considerably between mining operations. One smelting furnace can typically produce about 50,000 tonnes of nickel in ferronickel per year. Additional production requires a second furnace which needs more capital investment. The chapter discusses investment and operating costs for extraction of high-purity nickel from laterite ore as well as cost comparison of laterite smelting with laterite leaching.