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View all search resultsVale Indonesia halts mining amid delayed 2026 output approval
Deputy Mining Minister Yuliot Tanjung told reporters the approval was "currently being consolidated" and declined to give an indication of the quota.
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A general view at the nickel smelter of PT Vale Indonesia in Sorowako, South Sulawesi, on August 2, 2024. (AFP/Muchtamir Zaide)
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ickel miner PT Vale Indonesia said on Friday it was suspending mining activities in Southeast Asia's largest economy due to delays in the approval of its annual production plan.
All miners in resource-rich Indonesia are required to submit an annual production plan, known as RKAB, for official approval with the government setting output quotas for the industry. Expectations of a lower output quota in Indonesia, the world's top nickel producer, sent prices soaring towards the end of last year.
Vale said it could not carry out mining operations without the RKAB approval.
"The company believes that this delay will not disrupt overall operational sustainability and expects that the 2026 RKAB approval can be issued in the near future," it added in a stock exchange filing.
Asked about the overall 2026 RKAB issuance for nickel, Deputy Mining Minister Yuliot Tanjung told reporters the approval was "currently being consolidated" and declined to give an indication of the quota.
Mining Minister Bahlil Lahadalia said last week the government would cut mining output quotas to support prices.
Yuliot said on Friday the quota would be adjusted to meet demand from domestic smelters.
Indonesia's nickel smelter association FINI is forecasting that demand to reach around 340 million to 350 million metric tons in 2026, which the group said represents an annual increase of up to 50 million tons.
