Indonesia's mineral resources management strategy is now a major shift.

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Indonesia's state-owned mining enterprises called for control of nickel smelting capacity expansion, balance market supply and demand and sustainable use of resources, to deal with the challenges of international policy changes and reserve restrictions.

Faced with the risk of supply and demand imbalance in the global nickel products market, Indonesia's state-owned mining giant MIND ID recently proposed an industrial structure optimization plan. Enterprise executives pointed out that the explosive growth of domestic nickel smelting capacity has led to pressure on product prices, and the market price of some nickel-iron products has even fallen below the production cost line, and it is urgent to take restrictive measures on new secondary smelting facilities to prevent the global market from falling into a crisis of oversupply.

behind this strategic adjustment is the Indonesian government's long-term plan for the sustainable use of mineral resources. According to geological exploration data, the existing nickel ore reserves can only maintain the mining demand for the next 12-15 years. The authorities especially emphasize the need to concentrate resources to ensure the smooth progress of approved smelting projects and avoid damage to the huge investment in the early stage caused by sudden policy changes. As a supporting measure, the amendment to the Mineral Law promulgated in 2009 requires mining companies to establish a downstream processing system, and the ore export ban implemented in 2014 has strengthened this industrial chain integration trend.

market analysts believe that Indonesia's capacity control measures are essentially facing double pressure: not only to maintain the market position of the world's largest nickel producer, but also to cope with the changes in the demand structure brought about by the new energy transformation. At present, the continuous expansion of nickel pig iron and stainless steel production capacity has made Indonesia an important weather vane for global nickel product prices, and its industrial policy adjustment is bound to trigger a chain reaction in the international market.

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worth noting that this strategic adjustment not only protects existing investments, but also reserves room for the development of emerging technologies. By restricting the repeated construction of low value-added products, Indonesia expects to guide the flow of capital to high value-added fields such as high-purity nickel salt and battery materials, which is in line with the global new energy industry's demand for nickel resources.

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