Context: Four years ago, Indonesia implemented a permanent ban on nickel ore exports to stimulate foreign investments and promote domestic processing, aiming to bolster downstream industries. This ban attracted significant investment, particularly from China, leading to the construction of smelters and a remarkable 250% increase in Indonesia's nickel production since 2021.
However, this surge in production has resulted in nickel prices plummeting to near three-year lows.
Nickel (Ni)
- Nickel is a metallic element with a silvery-white, shiny appearance.
- It is the fifth-most common element on earth and occurs extensively in the earth’s crust and core.
- Nickel, along with iron, is also a common element in meteorites.
- Nickel occurs naturally in soil and water. It is also an essential nutrient for plants.
- Ferromagnetic properties of Nickel: Nickel is one of the four elements known to have the property to display ferromagnetism i.e., the ability to form permanent magnets. The others being Iron, Cobalt and Gadolinium.
- Production process of Nickel: Nickel does not occur in its native state. Pure Nickel is obtained by reduction of its oxides or by the Mond process which consists of the formation of volatile nickel carbonyl produced by passing carbon monoxide over heated Nickel oxide. This results in the dissociation of Nickel Oxide into Nickel and Carbon Monoxide, which can be used again.
- Physical properties of Nickel: Nickel has a high melting point of 1,453 degree Celsius, relatively low thermal and electrical conductivity, high resistance to corrosion & oxidation, excellent strength and toughness at high temperatures and capable of being magnetised.
- Chemical properties of Nickel: Pure Nickel is chemically reactive but large pieces are slow to react to a passive layer of Nickel Oxide formed over it.
Minerals of Nickel
Nickel is derived from two types of ore deposits:
- Laterites: Principal ore in this class are nickeliferous limonite and garneirite. (Accounting for 54% global Nickel reserves)
- Magmatic sulphide nickel deposits: Principal ore in this class is Pentlandite. (Accounting for 35% global reserves)
- Hydrothermal systems such as iron-nickel alloy, sedimentary-hosted polymetallic, and volcanogenic massive sulfide deposits, as well as seafloor manganese crusts and nodules. (Accounting for 10% global reserves)
In some cases, Nickel is associated with the Platinum group of elements and copper, which increases the value of nickel ore deposits.
Uses of Nickel
- Primarily, world nickel demand is for the production of stainless steel where about 65% nickel is consumed.
- Nickel resists corrosion and is used to plate other metals to protect them. It is, however, mainly used in making alloys such as stainless steel. It resists corrosion, even when red hot, so is used in toasters and electric ovens.
- A copper-nickel alloy is commonly used in desalination plants, which convert seawater into fresh water. Nickel steel is used for armour plating.
- Nickel is used in batteries, including rechargeable nickel-cadmium batteries and nickel-metal hydride batteries used in hybrid vehicles.
- Nickel has a long history of being used in coins.
Global Production and exports
- World Reserves of Nickel: World reserves of Nickel are estimated at 100 million tonnes with Indonesia and Australia having the highest reserves followed by Brazil and Russia.
- World Nickel Mineral Production: The main producers of Nickel mineral in the world are Indonesia (42%), followed by Philippines (14%) and Russia, New Caledonia, Canada & Australia.
- Production – Indonesia is the largest producer followed by Philippines and Russia.
Status of Nickel in India
- Nickel is not produced from primary sources in the country and the entire demand is met through imports.
- Nickel occurs principally as oxides, sulphides and silicates in India.
- Important occurrence is nickeliferous limonite in Sukinda Valley, Jajpur district, Odisha.
- In addition, nickel is found associated with uranium deposits at Jaduguda, Jharkhand and a process is being developed for its recovery.
- The State of Odisha is endowed with the largest share of resources of nickel ore in the country at 175 million tonnes (93%) followed by Jharkhand & Nagaland.
- ODISHA - Jajpur (140 million tonnes), Mayurbhanj (27 million tonnes) and Keonjhar (8 million tonnes).
- Jharkhand - 9 million tonnes (5%) resources most of which are in Singhbhum (East) district associated with Uranium deposits.
- Nagaland - 5 million tonnes (3%) resources which predominantly are in Kiphire district
India will have no option but to depend on imports for this metal till a technology to recover nickel from the overburden of chromite ore in Odisha is established on a commercial scale.