Nickel

Essential component

Our nickel business produces some of the world’s purest nickel, ferronickel and cobalt and it is also one of the largest recyclers and processors of nickel and cobalt-bearing materials.

“We have significantly reduced our production costs whilst increasing volumes.” Ian Pearce,
Chief Executive,
Xstrata Nickel

Nickel-containing materials are often used in the food and beverage, medical, communication and transport industries, as well as in gas turbines and chemical plants, often because they are:

• tougher
• more resistant to corrosion
• retain their strength despite temperature extremes and have several magnetic and electronic properties

Continuing to grow

Around two-thirds of all nickel goes into the production of stainless steel. The remainder is used for applications including super-alloys, batteries and electroplating.

Our nickel business is the fifth largest producer of nickel metal globally and we are growing our production. We are developing a major new nickel operation in New Caledonia, the joint venture Koniambo project, which is on track to deliver first metal by the end of 2012. We are also expanding our operations in Canada through the Fraser Morgan project in Sudbury, and the expansion of the Raglan mine in the far north of Quebec. Both Canadian projects will provide us with additional low-cost ore that we can process into refined metal at our smelter in Sudbury, Canada and refinery in Norway.