Nickel deposits are generally found in two forms: as sulphide or laterite ore. About 73% of the world's known nickel resources are laterites found mainly in tropical areas such as Indonesia, Cuba, Brazil and New Caledonia. The remaining 27% are sulphide deposits, with notable locations in Canada and Russia. Like Australia, Brazil has both sulphide and laterite nickel deposits.

The majority of today’s nickel is produced from sulphide deposits, as it is easier and cheaper than production from laterites. However, there is a lack of remaining sulphide deposits which are large scale and high quality. As a result, a higher proportion of future production is expected to come from laterite deposits. Laterite production is forecast to overtake that from sulphides by the end of the decade.

Sulphide-type nickel deposits are formed in essentially the same manner as platinum deposits. These sulphide ores are generally found hundreds of metres below the ground, and require underground mining infrastructure.

The process of forming laterite deposits is essentially similar to the formation of gold laterite deposits. They are closer to the surface, about 15 to 20 metres deep, and occur where nickel sulphides have been converted to oxide ores. Being closer to the surface, laterites can be mined via open-cut methods. However, laterite ores can be more difficult to treat and require higher capital and operating costs.