Indonesia suspends new midstream nickel product smelters

Indonesia's Minister of Mines and Minister of Industry have reached a consensus on a decision to impose a moratorium on new smelters 

producing midstream nickel products, a decision that focuses on smelters producing nickel pig iron and ferronickel.

According to CNBC Indonesia, Energy and Mineral Resources Minister Arifin Tasrif noted that Indonesia already has sufficient production 

capacity for midstream products such as nickel pig iron and ferronickel. Therefore, in order to avoid overcapacity and waste of resources,

 the government has decided to suspend the construction of new such smelters. This decision is based not only on an assessment of

 domestic production capacity, but also on a deep insight into the development trend of the global nickel market.

Translated with DeepL.com (free version)

Nickel has become a key strategic resource with the growing global demand for nickel resources, particularly driven by the rapid

 development of the electric vehicle industry and the renewable energy sector. The Government of Indonesia is aware that 

over-exploitation and inefficient use may lead to resource depletion and environmental damage. Therefore, by imposing a moratorium

 on the construction of new low value-added and highly polluting smelters, the Indonesian government hopes to achieve the sustainable 

use of nickel resources while promoting the industry's development in a higher value-added and more environmentally friendly direction.

It is worth noting that the Indonesian government has not completely abandoned the development of the nickel industry. On the contrary, 

they are actively promoting the development of domestic new energy industry, especially the electric vehicle industry and renewable energy field. 

These industries have a huge demand for high-quality, high value-added nickel products. By controlling nickel reserves and production, 

the Indonesian government can ensure a stable, high-quality supply of raw materials for the domestic new energy industry, 

thus promoting the upgrading and development of the entire industrial chain.

In addition, the Indonesian government is evaluating and constructing higher-technology nickel smelters, such as high-pressure acid 

leaching (HPAL) plants, 

to produce higher value-added nickel products. These efforts will help enhance Indonesia's competitiveness in the global nickel market and

 contribute to the country's economic green growth and sustainable development.

Although the Indonesian government has not yet issued formal regulations in response to the policy, the decision has already attracted 

widespread discussion and concern in the industry. For investors, they need to reassess their investment plans in Indonesia's nickel industry 

to adapt to the new policy environment. For the Indonesian government, they need to find a balance between protecting resources and 

promoting the industry to achieve long-term sustainable development goals.