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View all search resultsIndonesia mulls nickel smelter moratorium as global supply swells
Nickel prices fell to a year-to-date low of US$15,510 a tonne on Oct. 2, with further downside risks likely to hinge on Indonesia’s nickel supply policy, according to Fitch’s BMI Research.
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Smoke rises at Weda Bay Industrial Park (WBIP), a major nickel processing and smelting hub, in Lelilef Sawai, Central Halmahera, North Maluku. (AFP/-)
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ndonesia is considering a moratorium or restrictions on new nickel smelters that produce semi-processed products, as the government seeks to support prices and prevent a global oversupply of the metal.
“We want to start choosing which industries should continue and which need a moratorium, so that we do not exploit our natural resources recklessly,”, Coordinating Downstream and Energy Transition Minister Bahlil Lahadalia said on Wednesday.
About 50-60 percent of the country’s nickel smelters still produce semi-processed products, but supply has already outpaced demand by about 2.5 million tonnes, putting pressure on global prices, Bahlil said.
To address the oversupply concerns, the government will review its nickel industry strategy, including whether to halt or limit new capacity for plants producing semi-processed nickel, while prioritizing facilities that can make higher-value downstream products directly.
“We want to promote industries that can produce downstream products directly, so we can achieve a genuine shift in the structure of our economy,” Bahlil said.
Read also: Indonesia could run out of nickel within a decade
Nickel prices fell to a year-to-date low of US$15,510 a tonne on Oct. 2, with further downside risks likely to hinge on Indonesia’s nickel supply policy, according to Fitch’s BMI Research.
