IC 9276 Availability of Primary Nickel in Market-Economy Countries: A Minerals Availability Appraisal

The U.S. Bureau of Mines has evaluated the potential availability of nickel from 36 deposits or districts in 16 market-economy countries (MECs), analyzing more than 95 percent of production in those countries. This study indicates the quantity of nickel available on the basis of net production costs and total costs with a 0-pct and a 10-pct discounted cash flow rate of return (DCFROR). Costs of production are expressed in dollars per pound of recovered nickel. The study also indicates sensitivities of the cost of production to energy, labor, and other factors. The studied deposits and properties contain approximately 33 Mmt of recoverable nickel. About 26 Mmt of nickel is potentially recoverable from laterite deposits, of which 4.5 Mmt can be produced at $2.50/lb or less with a 0-pct DCFROR. Approximately 7 Mmt of nickel is potentially recoverable from sulfide deposits, of which about 6.3 Mint could be produced at $2.50/lb or less at a 0-pct DCFROR. The price of nickel averaged above $6.00/lb in 1988. Sensitivity studies performed for both laterite and sulfide deposits indicate that the total cost of producing nickel from laterites is most sensitive to increases in energy costs and that the total cost of producing nickel from sulfide deposits is most sensitive to increases in labor costs; sulfides are also affected by changes in revenues from byproducts.