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Ministry defends nickel imports to preserve domestic reserves
The government apparently sees no problem with local miners importing nickel ore for further processing at their smelters, with the APNI warning that the current expansion in smelters could quickly deplete domestic reserves.
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A nickel smelter operates beneath rolling thunderclouds on July 7, 2024, at Indonesia Weda Bay Industrial Park in Lelilef, North Maluku. (AFP/Azzam Risqullah)
T
he Energy and Mineral Resources Ministry has defended local smelters importing nickel ore, despite the availability of abundant domestic resources.
The ministry said the decision to ship ore from other countries was part of an individual company’s business strategy, adding that the practice had a positive side effect by helping to extend the domestic supply of the critical mineral in light of depleting reserves.
Importing the mineral “allows us to benefit from our domestic resources for a longer time”, deputy energy minister Yuliot said on Monday, as quoted by Kumparan.
Data from the United States Geological Survey show that Indonesia has the world’s largest nickel reserves at 42.3 percent of the global total, or 55 million tonnes.
In 2023, the country produced 1.8 million tonnes of nickel, accounting for half the global output.
However, the country still imported 7.4 million tonnes of nickel ore and concentrates in the first nine months of this year, 97 percent of which came from the Philippines, according to data from Statistics Indonesia (BPS).
Coal and Mineral Mining Director General Tri Winarno said the government always reviewed the business plans of local miners to ensure they could meet domestic demand.
