Nickel's back: Rising nickel prices are projected to lead to revenue growth

The Nickel Ore Mining industry has faced difficult operating conditions over the past five years. The world price of nickel declined significantly in some years over the period, while industry output has fallen substantially. Most of the nickel ore mined in Australia is processed locally into nickel concentrate by downstream smelting and refining firms, or by nickel ore mining companies that also operate their own smelters and refineries.A slowdown in infrastructure projects and in the production of nickel-based stainless steel goods in China has reduced global and local demand for nickel over the past five years. These factors have reduced Australian nickel exports, and contributed to lower nickel prices as demand has fallen...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
-7.6%
Forecast Growth 19-24
Profit
Employment
2,186
Businesses
42

Industry Threats & Opportunities

  • The majority of nickel ore mined in Australia is processed locally into nickel concentrate
  • As nickel prices have fallen, most industry firms have reported low margins or losses over the period
  • Nickel prices are projected to increase at a steady pace over the next five years
  • Industry Report - Starting a New Business Chapter

    The Nickel Ore Mining industry has substantial entry barriers for new firms. Firms require a large amount of capital to either discover or purchase a nickel prospect. These early exploration costs can be significant and are often risky due to mining resource uncertainty. Industry firms require sufficient working capital until they obtain positive cashflow, and enough expertise to establish trading links with a nickel buyer. Furthermore, substantial capital costs relate to obtaining mining equipment, trucks and vehicles, in addition to some processing equipment to convert the nickel ore into ore concentrate for further processing...purchase to read more.

    Additional Insights for the Nickel Ore Mining Industry

    IBISWorld has determined the most important Key Success Factors for the Nickel Ore Mining are:

  • Availability of nickel resources
  • Output is sold under contract - incorporate long-term sales contracts
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as World price of nickel and Demand from gold and other non-ferrous metal processing in the Nickel Ore Mining industry impact industry performance..

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    What's in this report

    What is the Nickel Ore Mining Industry?

    Industry firms mine nickel-bearing ores. These firms may also carry out basic nickel ore beneficiation processes to produce nickel ore concentrate, which is considered an industry product. Nickel ore that undergoes additional processing is included in other downstream manufacturing industries.

    Industry Products
  • High-grade nickel ore
  • Medium-grade nickel ore
  • Low-grade nickel ore
  • Nickel ore concentrate
  • Industry Activities
  • Nickel ore mining
  • Nickel ore beneficiation processes
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of nickel
  • Demand from gold and other non-ferrous metal processing
  • US dollars per Australian dollar
  • World price of steel

  • Current Performance
  • Industry structure
  • Boom-bust prices
  • Mixed growth
  • Chart: Revenue Growth

  • Industry Outlook
  • A growing appetite
  • Output recovers
  • Price gains
  • Table: Nickel Ore Mining Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Nickel Ore Mining Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Gold and Other Non-Ferrous Metal Processing
  • Metal Coating and Finishing

  • Key Selling Industries
  • Contract Mining Services
  • Mineral Exploration
  • Mining and Industrial Machinery Wholesaling
  • Petroleum Product Wholesaling

  • Products & Services
  • High-grade nickel ore
  • Nickel ore concentrate
  • Medium-grade nickel ore
  • Low-grade nickel ore
  • Chart: Nickel Ore Mining Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic nickel processors
  • Export markets
  • Other domestic metal processors
  • Chart: Major Market Segmentation for the Nickel Ore Mining Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Nickel Ore Mining

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Nickel Ore Mining Industry

  • Industry Globalization
    BHP Billiton Limited, Glencore Holdings Pty Limited, Western Areas Limited,
  • Table: BHP Billiton Limited - financial performance
  • Table: Glencore Holdings Pty Limited - financial performance
  • Table: Western Areas Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Nickel Ore Mining Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Nickel Ore Mining Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Wages (2010-2024)
  • Nickel Content Mined (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Beneficiation
  • A basic process that improves the ore content prior to additional refining and smelting processes.
  • Concentrate
  • A fine, powder-like product containing the valuable ore mineral from which some of the waste mineral has been eliminated.
  • Lateritic Nickel Ore
  • A low-grade nickel ore that is found near the Earth's surface and is mined through open pit mining methods.
  • Nickel Pig Iron
  • A lower priced and lower quality nickel product made by Chinese producers that is more expensive to produce due to the low nickel grade.
  • Solvent Extraction
  • A process to recover nickel by using sulphuric acid to dissolve metal from ore, and then processing the solution to recover both the metal and the acid (which can be re-used).
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Nickel Ore Mining market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
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    This report on Nickel Ore Mining:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Nickel Ore Mining market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Nickel Ore Mining, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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