Indonesia, the world’s top nickel supplier, was reportedly weighing deep production cuts to the metal’s mining quota and is considering lowering the amount of ore mined next year to as low as 150 million tonnes from 227 million tonnes this year.
he Energy and Mineral Resources Ministry said that the government has yet to discuss plans to curb next year’s nickel production quota amid slumping prices.
Indonesia, the world’s top nickel supplier, was reportedly weighing deep production cuts to the metal’s mining quota and is considering lowering the amount of ore mined next year to as low as 150 million tonnes from 227 million tonnes this year, Bloomberg News reported on Dec. 19.
Tri Winarno, the ministry’s coal and mineral mining director general, said the government will evaluate nickel miners’ compliance with the budget plans (RKAB) for the time being.
“As of today, there have been no talks,” he said on Thursday, as Kumparan reported. “There are no discussions to slash [output quotas], but we will evaluate companies’ compliance with their obligations.”
Nickel futures fell to US$15,260 per tonne in December, the lowest in over four years amid pressure from a stronger dollar, uncertain demand and ample supply, Trading Economics data shows.
Read also: Ministry to curb nickel output to push up global prices
Nickel, which topped out at more than $100,000 a tonne in 2022 during a shortage, is trending about 8 percent lower this year, Bloomberg News reported.
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