great background article

NO WONDER WE ARE A HOTBED OF NI CONSOLIDATION>>>LOOK AT THE TABLE AT THE END ON RESERVES>>MORE CONSOLIDATION TO COME!!!!!

NICKEL
Acquisitions and mergers have completely changed the structure of the global nickel industry since 2004. In 2006, the two leading nickel producers in Canada were taken over by even larger foreign mining companies. In 2007, the leading nickel producer in the world—a Russian company—created an entire overseas production operation by acquiring and then integrating existing facilities in Australia, Botswana, and Finland. The larger of the two Canadian takeover targets was preparing to commission a laterite mining complex at Goro, New Caledonia. The New Caledonian nickel was to be recovered onsite using advanced pressure acid leach technology. Australia’s leading nickel producer was developing a laterite deposit near Ravensthorpe, Western Australia. Nickel and cobalt were to be leached from the ore and converted onsite to an intermediate hydroxide, which would be refined at Yabulu, Queensland. Several other companies were considering employing some form of acid leach technology to recover nickel at greenfield sites in Brazil, Cuba, Guatemala, Indonesia, Kazakhstan, Madagascar, and the Philippines. A new type of heap-leaching process was being used to recover nickel in Turkey. Work was underway on a more traditional, ferronickel plant in Goias, Brazil. Some nickel consumers were concerned that global consumption of the metal would outstrip supply before new mining projects could be completed. Continued high prices for gasoline and other petroleum products have spurred development and production of novel hydrogen storage and battery materials, such as lanthanum-nickel-cobalt alloys. Nickel-metal hydride (NiMH) batteries continue to be widely used in hybrid motor vehicles, despite inroads made by lithium-ion batteries. Sales in the United States of hybrid electric passenger vehicles have risen steadily to 247,000 in 2006 from 9,370 in 2000. Major air carriers began ordering planes again, after a 5-year lull in the wake of the 2001 terrorist attacks, thus increasing demand for superalloys.
World Mine Production, Reserves, and Reserve Base: Estimates of reserves for Canada and New Caledonia and the reserve base for the United States were revised based on new mining industry information.
Mine production Reserves6 Reserve base6
2006 2007e Reserves Reserves Base
United States — — — 150,000
Australia 185,000 180,000 24,000,000 27,000,000
Botswana 38,000 35,000 490,000 920,000
Brazil 82,500 75,300 4,500,000 8,300,000
Canada 233,000 258,000 4,900,000 15,000,000
China 82,100 80,000 1,100,000 7,600,000
Colombia 94,100 99,500 830,000 1,100,000
Cuba 75,000 77,000 5,600,000 23,000,000
Dominican Republic 46,500 47,000 720,000 1,000,000
Greece 21,700 20,100 490,000 900,000
Indonesia 140,000 145,000 3,200,000 13,000,000
New Caledonia7 103,000 119,000 7,100,000 15,000,000
Philippines 58,900 88,400 940,000 5,200,000
Russia 320,000 322,000 6,600,000 9,200,000
South Africa 41,600 42,000 3,700,000 12,000,000
Venezuela 20,000 20,000 560,000 630,000
Zimbabwe 8,820 9,000 15,000 260,000
Other countries 34,300 41,000 2,100,000 5,900,000
World total (rounded) 1,580,000 1,660,000 67,000,000 150,000,000
World Resources: Identified land-based resources averaging 1% nickel or greater contain at least 130 million tons of nickel. About 60% is in laterites and 40% in sulfide deposits. In addition, extensive deep-sea resources of nickel are in manganese crusts and nodules covering large areas of the ocean floor, particularly in the Pacific Ocean.
Substitutes: To offset high nickel prices, engineers have begun substituting low-nickel, duplex, or ultrahigh-chromium stainless steels for austenitic grades in a few construction applications. Nickel-free specialty steels are sometimes used in place of stainless steel within the power generating and petrochemical industries. Titanium alloys or specialty plastics can substitute for nickel metal or nickel-base alloys in highly corrosive chemical environments. Cost savings in manufacturing lithium ion batteries allow them to compete against NiMH in certain applications.

US Import Sources (2003-06): Canada, 41%; Russia, 16%; Norway, 11%; Australia, 8%; and other, 24%.