Indonesia considers terminating permits for some nickel pig iron production
Add details and background from paragraph 2
By Fransiska Nangoy and Siyi Liu
JAKARTA, June 11 (Reuters) -The Indonesian government is conducting a comprehensive evaluation regarding the termination of permits for the RKEF smelters which make products in the form of ferronickel and nickel pig iron, a mining ministry official said on Tuesday.
The world's biggest nickel producer is experiencing a rapid depletion of ore after a surge in downstream investment, prompting the government to seek ways to reserve stocks for higher value added products such as the nickel chemicals used in making batteries for electric vehicles.
Irwandy Arif, a senior official with the Energy and Mineral Resources Ministry, said the government is focused on the development of High Pressure Acid Leach (HPAL) smelters - which extract nickel and cobalt from laterite ore bodies to produce Mixed Hydroxide Precipitate, a precursor material for the battery industry - and smelters that produce nickel matte.
It is unclear whether the possible termination will apply to existing permits.
Reserves of ore graded above 1.5% are expected to last until 2029 assuming there is no further exploration, Irwandy told participants at an industry conference organised by the Shanghai Metal Market.
Once a major exporter of nickel ore, Indonesia banned shipments of unprocessed nickel in 2020 to attract investment onshore.
The Indonesia Nickel Miners Association (APNI) has also urged the government to impose a moratorium on new pyrometallurgy plants to extend the lifetime of high-grade reserves.
Indonesia's high-grade 1.7% nickel ore is used mainly to produce nickel pig iron, a feedstock for stainless steel, with EV batteries using lower grade nickel.
Reporting by Fransiska Nangoy and Siyi Liu in Jakarta; Editing by Muralikumar Anantharaman, Kirsten Donovan
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
