Nickel Needs Set to Drive Mining Projects

By John Bensalhia

The global energy transition hinges on greater extraction of nickel for renewable energy sources, supporting a need for new mines. Boring equipment and heavy-duty machinery are on the shopping lists of mine developers. Next stop, securing logistics to move out of-gauge units to mines in remote locations.

From Issue 2, 2024 of Breakbulk Magazine.


Nickel may have historically been one of the more ‘invisible’ elements – despite its use in virtually everything from stainless steel to mobile phones – but it’s becoming a more widely known presence because of its contribution toward renewable energy sources such as rechargeable electric cars and vehicle batteries. The International Energy Agency has predicted that by 2030, demand for nickel will increase by at least 65 percent. New mines and project cargo logistics support will be needed to support the growth.

Clare Richardson, director of communications and member services at the Nickel Institute, said that the main benefits of nickel mining are that it enables society to benefit from an amazing resource that is very versatile. “Nickel has a range of properties which enable it to be used in thousands of applications. Most nickel production is used to make stainless steel. In this application, it brings ductility and works with the chromium in stainless steel for corrosion resistance. Nickel-containing stainless steel is long lasting and is suitable for hygienic applications like food preparation and medical equipment.”

Richardson added that there are some great examples of longevity: “Take the Chrysler building in NY – it has only been cleaned a couple of times in over 90 years, and the nickel-containing stainless steel cladding still looks amazing.”


Oversize Equipment Need

With such demand, project cargo movers are increasingly involved in the burgeoning nickel mining sector, shifting large, oversized equipment to mines. Mining projects around the globe have continued apace, and in some cases, are relatively new. Pacific Nickel Mines Ltd, which owns the majority of Pacific Nickel Mines Kolosori Limited, recently completed its first direct-ore shipment.

While it may not have had the giftwrapped goodies of Santa’s sleigh, a 60,000 deadweight-ton bulk carrier was used to transport the nickel ore on Christmas Day 2023. Four 3,000- ton barges were employed to transfer the ore from Isabel Island (in the Solomon Islands) on to the vessel.

The Kolosori Project’s future looks set to be a healthy one. A forecast predicts that Kolosori can yield around 1.4 – 1.5 million tons per annum (mtpa) of nickel ore for the next six years. This year will witness a move into steady state production, with a second project in the pipeline that will aim to replicate the success of the first, adding extra value.

Nickel mining does, however, pose some challenges for the breakbulk sector. Accessibility to and from the nickel source can prove to be a problem. For instance, if the source is in a remote location with adverse weather conditions, navigating the intended route requires not only extensive planning, but also a touch of spontaneous improvisation.

A recent case in point is Trans Global Projects Brazil’s mission to ferry vital equipment for mining work at the Araguaia nickel project based in Para State Brazil. Hired by Horizon Minerals, TGP Brazil was tasked with the transportation of 1,600 tons worth of mining equipment, including transformers, kilns, rotary dryers and feed bins. But as Colin Charo, CEO of Trans Global Projects, commented, transportation was to prove to be a huge challenge for the company, owing to various issues that arose during the journey to the Carajas mining district. “We had to navigate a lack of proper infrastructure in the region, manage complex red tape, and handle the out-of-gauge dimensions and weights of the cargo.”


Preparing a River Run

To overcome the challenge of the area’s landscape, TGP Brazil elected to use specially configured barges to ferry the equipment down the Araguaia River. But as Charo explained, this required a great deal of pre-planning.

“As there are no established ports along the Araguaia River, soil preparation works had to be carried out by our team to enable discharge of the barges to the river bank. By making use of the river, we shed months off the journey compared to moving the 15 loads of cargo solely by road transport from the port to the project site.”

Extensive planning and meticulous coordination were also required once the cargo reached dry land in order to reach the Carajas mining district safely. “We faced our biggest obstacle during this final stretch of the journey,” Charo said. “We had to lift 500 power lines in total to allow the cargo to pass under... Finally, after a complex journey across continents and waterways, the cargo arrived at its destination.”

Another example of accessibility is Raglan Mine, which is located 80 kilometers south of the Arctic Ocean in Quebec, Canada. In a video presentation, Trevor Blair, senior supervisor of strategic planning and business development for Glencore’s Raglan Mine, explained that “nickel sulfides develop in tectonic environments where you have spreading of tectonic plates.” The outcome of this is that the magma that comes out from the core of the earth has a high concentration of nickel. This causes tiny little deposits to scatter all over the 70-kilometer strike length.

Once mined, the material that comes out is around an 18 percent concentrate of nickel. It’s taken to Glencore’s deep sea port, Deception Bay, which then ships to Sudbury Integrated Nickel Operations, Ontario for smelting. While Raglan is a valuable site for nickel mining, Blair acknowledged that the area is “desolate”. “We are in permafrost and the rocks below to a depth of around 450 meters are frozen all the time.” The journey to Sudbury is also hampered by freezing weather and ice, with occasions when the ship can take days simply to travel a few miles.


Energy Transition Demand

But while nickel mining may not offer a smooth path to its end destination, continued demand and interest hold out much potential for the project cargo market.

The early part of 2024 has already continued to see new mining potential for the coming year with interest and investment in future mining projects in Indonesia. Chinese EV battery company Ningbo Contemporary Brunp Lygend (CBL) has announced that it will be investing US$420 million in Indonesia’s nickel mining and EV battery manufacturing industries. The collaboration has the end goal of developing and operating an industrial zone for East Halmahera’s battery ecosystem.

Also recently announced was the 60 percent stake acquisition in Indonesian miner PT Adhi Kartiko Pratama (AKP) by South Korean trading firm LX International Corp. The stake for 132.9 billion won (US$99.8 million) will be used as a means of obtaining vital minerals for secondary batteries. PT AKP’s 2,000-hectare mines, located in Morowali Industrial Park on Sulawesi Island, contain reserves of 36 million tons of mineable nickel – enough to battery power seven million electric vehicles. Furthermore, the location has convenient access to a pit, port, haul road and nickel smelters, allowing for accessible cargo management.

A report published by the International Nickel Study Group, or INSG, in the wake of meetings held in October 2023, also provided some insights into what this year could hold in store for the mining sector. As well as a forecast growth for nickel usage in batteries, the INSG also predicts an increase in another big market for nickel – stainless steel. On a more general note, the report also estimates that world primary nickel production will see a further increase in 2024 to 3.713 million tons, catering for a predicted increase in world primary nickel usage of 3.474 million tons for this year.

The last word on the future of nickel and the need to increase mining of it goes to Gary Coates, market development and technical manager of the Nickel Institute, who said he sees a bright road ahead. “I see it as an element of change, not only to build emerging economies, assets and infrastructure, but also to be able to connect the world.”


TOP PHOTO: interspersed copper-nickel mining at Quarry Bear stream in Norilsk, Russia. CREDIT: Nikolay Zhukov
SECOND: TGP Brazil used specially configured barges to ferry equipment down the Araguaia River. CREDIT: TGP