Nickel
Overview
Overview
Africa contributes to 4.2% of the global annual nickel production, with South Africa and Madagascar leading in the continent. South Africa produces 1.8% and Madagascar 1.4% of the world's nickel. The key producers in 2021 were South Africa (31,800 tons), Madagascar (29,400 tons), and Ivory Coast (27,800 tons).
Africa is poised to benefit from the increasing demand and prices of battery-grade nickel, particularly with ongoing projects like South Africa's Thakadu Nickel Sulphate Project and Tanzania's Kabanga Nickel Project. The Thakadu project, part of South Africa’s Black Industrialists Programme, began producing battery-grade nickel sulphate in March 2021. In Tanzania, Lifezone Metals' Kabanga project, one of the largest undeveloped nickel sulfide deposits, received a processing facility license in 2024, marking a significant step in Africa's nickel production and processing capabilities.
Nickel reserves
Nickel production
Major nickel
mining projects
South Africa
Madagascar
Main copper export destinations
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South Africa exports in 2020
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|---|
| China ($78.9 million) |
| Italy ($49.2 million) |
| Singapore ($45.5 million) |
| United States ($34.9 million) |
| Japan ($27.3 million) |
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Madagascar exports in 2020
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|---|
| Japan ($52 million) |
| South Korea ($33.8 million) |
| Sweden ($16.1 million) |
| Netherlands ($14.6 million) |
| China ($13 million) |
Processing capacity and value-addition initiatives
Processing capacity and value-addition initiatives
With battery-grade nickel remaining in a deficit, its wealth of nickel deposits will position Africa from an uptrend in prices in the coming years. African nickel production will rise in the coming years, with South Africa and Tanzania to benefit the most. In South Africa, nickel is commonly mined as a by-product of platinum-group metals (PGMs). The boom in nickel demand for batteries and the corresponding increase in price has renewed interest in the sub-sector.
The Thakadu Nickel Sulphate Project forms part of South Africa’s Black Industrialists Programme and involves the construction of a pure nickel sulphate plant aimed at producing battery-grade material, using Mintek’s proprietary process, for the export market. The Thakadu Battery Materials began production in March 2021, sourcing predominantly from Sibanye-Stillwater's operations.
In March 2024 it was reported that Lifezone Metals has received a Multi-Metal Processing Facility Licence from the Government of Tanzania to refine nickel, copper, and cobalt from its Kabanga Nickel Project at Kahama, located beside Barrick Gold’s former Buzwagi Gold Mine. The Kabanga Nickel Project is located in the north-west Tanzania and is believed to be one of the world’s largest and highest-grade undeveloped nickel sulfide deposits. The Kahama Multi-Metal Processing Facility site is located approximately 340 km south-west of Kabanga. Lifezone’s subsidiary, Tembo Nickel Corporation Ltd. is the operating entity for Kabanga and Kahama, and is 16% owned by the Government of Tanzania.
