Actual Condition of China’s Metal Nickel

Before 1960, China had mainly relied on imports for its nickel consumption. Since that year, due to the discovery and production of the large Jinchuan Cu-Ni sulfide deposit in Gansu, the nickel supply situation in the country has taken a turn for the better.

In the 1970s, China’s annual consumption of nickel was less than 20,000 tons, and its annual production of the metal, only about 10,000 tons. In the 1980s, its annual production rose to about 25,000 tons and the annual consumption,about 30,000 tons.In the 1990s,the country’s annual production of nickel was more than 30,000 tons and the annual consumption, about 30,000 tons, basically reaching a balance between the two.

shows China’s imports and exports of smelted nickel in recent years.

Imports and exports of smelted nickel

Trends

Jinchuan is the largest nickel production base in China. After the completion of its second-phase project for expansion during the 8th Five Year Plan, its productive capacity of electrolytic nickel reached 40,000 tons per year. The development and utilization of the Kalatongke Cu-Ni deposit in Xinjiang and the Baimazhai Cu-Ni deposit in Yunnan also increased the nickel ore production of the country. However, it should be noted that China’s nickel consumption is still low. For instance, the nickel/steel ratio of China is now about 0.4¡ë, far less than the average of the world (1.1¡ë) and the range of industrialized countries (1.6¡ë~2.3¡ë). With the development of its economic construction and steel industry, China’s demand for nickel will grow. In terms of 120 and 150 million tons of its steel production in 2000 and 2010, respectively, the country’s demand for nickel in the two years will reach 70,000 and 100,000 tons respectively. Based on its totalvolume of nickel resources, it is not questionable to secure the demand of the country’s nickel industry and production for such resources. But due to the over-concentration of the reserves (in Jinchuan) and the limitation of the mining conditions, it is difficult to greatly increase the production. It is estimated that by the year 1020, China’s nickel production will be only about 50,000 tons per year and the rate of its self-sufficiency in nickel will decline from the present 80% to about 50%.As the professional manufacturer of complete sets of mining machinery, such as hammer crusher,vibrating screen, Henan Hongxing is always doing the best in products and service.

To ease the contradiction between the nickel supply and demand in China and raise the rate of its self-sufficiency in nickel, it is most important to search for and establish new nickel bases through geological exploration and mine construction. The metallogenic geological conditions of China’s nickel deposits suggest that the exploration of nickel should focus on such areas as Hongqiling of Jilin, the central Qinling Mountains, and Qiongtage, Hami (Kumul), Altay and the north margin of the Tarim Basin in Xinjiang. In particular, we shouldpay close attention to the nickel exploration and mine construction in eastern Xinjiang, and make every effort to establish large nickel production bases.

Secondly, the development and utilization of the Jinchuan nickel mine should be intensified. It occupies a decisive position in China’s production of nickel, cobalt and platinum group metals and is also an important production base of copper. Therefore, the external conditions must be actively improved and the study of mining methods strengthened so as to raise the output of the mine and meet the country’s demand for nickel.

Thirdly, the exploration, development and research of polymetallic nodules on the sea floor must be strengthened. Although these efforts may not play a big role in solving the contradiction between the nickel supply and demand in China, they are of great strategic significance and ought to receive great attention.

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