Challenges Facing Nickel And Base Metal Industries

With the current economic situation, the demand for nickel and other base metals has fallen significantly. More than 440 kt/yr world nickel capacity has been taken out of production within the last year, or more than 25% of the total [1]. This situation is similar to that at the end of 1970?s and it will take a number of years for the demand to recover to the levels before the economic downturn. In the meantime, the challenges facing the industry have increased due to diminishing ore grades, more inaccessible and complex deposits, mounting capital and operating costs and the various external pressures which include socio-economic, environmental, and energy challenges. All industries will be faced with paying the ?total ownership costs? in the future. This will only increase the burden on the industry. How to cope with this in what Thomas Friedman calls the ?Energy-Climate Era? [2] will be the most pressing challenge for the next generation of metallurgists and managers. It will force us to take a broader view of the problems and the solutions beyond mere technical. The metallurgists, engineers and project managers will have to look at the overall projects and their objectives in designing the solutions, requiring a top-down strategic approach.