Predicted and active increases in nickel demand have incentivized mining companies in locating and
harvesting new and known nickel reserves to prepare for future needs. The International Energy Agency
expects Indonesia, the world’s largest nickel producer, to meet two thirds of the world’s needs for the
metal. The country has already signed deals worth billions of dollars with international players keen to
invest in processing plants as well as mines. At the same time, corporations such as The Metals Company
are looking to take advantage of vast nickel reserves on the ocean floor.
Australia, Indonesia, South Africa, Russia and Canada account for more than 50% of the global nickel
resources. Historically, more than 80% of known nickel reserves have been mined, but at the same time,
known reserves and resources have steadily increased. This is due to a multitude of factors, including
increased surveying and exploration from mining companies, and improvements in refining techniques,
allowing for the refinement of lower quality nickel ore.
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. Nichrome is an alloy of nickel and chromium with small amounts of
silicon, manganese and iron. 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 is used in batteries, including rechargeable nickel-cadmium batteries and nickel-metal
hydride batteries used in hybrid vehicles. As the world shifts to greener vehicles and needs more
rechargeable batteries, the International Energy Agency (IEA) predicts that demand for nickel will grow
by at least 65% by 2030.
Nickel mining, while crucial for technological and economic development, is known to cause a number of
environmental issues. In Indonesia, nickel mining requires massive deforestation to clear land for
excavation. In addition to destroying habitats, this deforestation reduces soil stability, severely increasing
runoff and erosion. Rapid deposition of stripped sediments only results in a greater ecological disaster,
choking reefs, displacing fish, and destroying the livelihoods of local fishing villages. Toxic industrial
mining effluents compound the issue, as trace heavy metals are released into water supplies, further
poisoning surrounding areas.
Underwater approaches to nickel mining seek to mitigate the various environmental pitfalls of the more
conventional methods, such as those implemented in Indonesia. The Metals Company, for example, plans
to use hut-sized robots to stir up sediment on the bottom of the ocean, filter out nickel rich manganese
nodules, then use water jets to send them to the surface. This approach arguably has a significantly lesser
environmental impact than conventional methods, but has been criticized for its under-researched impact
on ocean floor ecosystems.
In the coming decades, the need for nickel will increase proportional to our need for advanced
technology, ranging from electric cars, to cell phones, to desalination plants. Nickel is an important
resource to our global economy and is slated to become more valuable with time, not less. Even beyond
its economic worth, nickel is forecasted to be increasingly valuable as a tool for environmental protection,
as electric cars and desalination technologies provide promising solutions to reducing carbon emissions
and increasing freshwater availability, respectively. But as we look to a future of nickel, it’s important to
remember that nickel isn’t a free resource. Nickel mining, whether in Indonesia or at the bottom of the
ocean, has drastic and often detrimental effects on the environment around it. Before we turn to nickel to
fund our future, we need to ask ourselves the difficult questions. How much is too much to pay for a
future built on nickel?
Nickel Mining
