The Jakarta Globe quotes Anton Berlin, head of marketing for Norilsk, saying if prices rise above $20,000 a tonne on the back of Indonesia’s proposed ban on the export of ore, many idled mines can re-open.
“If this ban is executed in full and is applied perfectly, a significant volume of ores will be under-supplied to China,” Berlin said on Wednesday in Moscow. The global reserve of production capacity can compensate for that under-supply, he added.
Indonesia is the top supplier of nickel to China. The ban, which includes manganese, gold, silver and copper ore, is two years ahead of schedule and is designed to increase the value of exports. Indonesia shipped 33 million tonnes of nickel ore and 40 million tons of bauxite last year.
Norilsk is the world’s number one producer of nickel and palladium in the world and is also a top miner of platinum and copper. From its Siberian base the Russian firm runs mines in Australia, Botswana, Finland and South Africa.
MINING.com reported in December the company is spending $10.9 billion to expand its mineral resource base including development of existing mining assets and construction and commissioning of new mines.
Norilsk Nickel To Invest Us$10.9 Billion To Expand Resource Base
Dec 9, 2011. World #1 nickel and palladium producer Norilsk Nickel is investing heavily in new and existing mines.
The Russian mining conglomerate announced today it will spend US$10.9 billion to expand its mineral resource base including development of existing mining assets and construction and commissioning of new mines.
It will also spend $US632 million to explore the Norilsk and Murmansk regions until 2025.
Reserves will grow substantially over the next 13 years, Norilsk states in a press release:
Total expected reserves growth across all ore types in Norilsk Industrial Region with exploration works until 2025 taken into account will total 670 million tons, including Ni – 4.87 mln tons, Cu – 9.46 mln tons and PGM – 5.08 thousand tons.
By 2025 the expected growth of ore reserves in Kola Peninsula will reach 70 million tons including Ni – 0.75 mln tons and Cu – 0,34 mln tons.
Norilsk Nickel is the largest diversified mining and metals company in Russia, the world’s largest producer of nickel and palladium and one of the world’s largest producers of platinum, rhodium, copper and cobalt. The company also produces a large number of by-products, including gold, silver, tellurium, selenium, iridium and ruthenium.
The key production units in Russia are on the Polar and Kola Peninsulas and it also operates mines in Finland, Australia, Botswana and South Africa.