What were the most significant events to impact the nickel industry in 2010?

By Patrick Whiteway

No doubt nickel producers are breathing a sigh of relief today because the price of nickel ended the year above US$11 a pound. That's good news for the new, high-cost producers coming on stream and for existing producers in strike-bound Ontario, Canada that recently came back online.

What events in 2010 contributed to this happy state of affairs?

Following, are my nominations for the ten most important events that kept demand for nickel rolling along and what managed to limit the supply of nickel, thus keeping prices relatively high, so that most producers could have a good chance of making a profit.

1. A year-long strike at Vale SA's nickel operations in Sudbury finally came to an end in July thanks to intervention by the Ontario provincial government.

2. The tug-of-war between two Russian oligarchs for control of Norilsk Nickel continued throughout the year, stifling the world's largest nickel producer from concentrating on productivity and environmental improvements to enhance shareholder value. http://bit.ly/dIBz0d

Vale SA's Goro Nickel Laterite Project in New Caledonia

3. Two major high pressure acid leach (HPAL) nickel laterite operations inched toward full production under the watchful eye of nickel analysts around the world, some of whom doubt these projects can make a buck.

4. Stainless steel production rebounded from the global financial crisis and nickel continued to find new markets in de-carbonizing the global economy through solar energy plants, wind farms, hydro power plants, biomass plants, fuel cell power plants, waste heat power generating plants and carbon sequestering applications.

5. The European Union Court of Justice announced it will decide (probably in 2011) if the recent classification of nickel compounds as carcinogens, mutagens and reproductive toxicants is valid. http://bit.ly/aI8pFW

6. Chinese companies made significant investments in junior nickel exploration and producing companies in Canada. Junior nickel exploration companies increased their spending on grassroots projects, advancing projects across the country.

7. Cliffs Natural Resources gained control of the chromite production potential in Ontario's Ring of Fire, leaving Noront Resources holding the potential for nickel production in this greenfields project that is not without controversy. http://bit.ly/bKH1as

8. Glencore International Group continued to seek control of more nickel production capacity worldwide. http://bit.ly/9socXZ

9. Nickel health classifications in Europe continued to give nickel platers the chills over cancer risks. This chill had a cooling effect on other, more important markets as well. http://bit.ly/9vBZtu

10. Rio Tinto joined the long list of new nickel production capacity by announcing plans to develop the Eagle mine in Michigan State by 2013. http://www.eagle-project.com/

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