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Indonesia Aims to Manage Nickel Ore Supply to Support Prices

2024-10-19 11:01

Wedoany.com Report-Oct 19,  Indonesia aims to manage nickel ore supply and demand to support prices, its mining minister said on Friday, amid reports of delays in the quota approval process forcing some smelters to import ores from the Philippines.

Indonesia, a major producer of nickel ore, has from this year changed the validity of its mining quota document, known as RKAB, to three years from one year, although it will determine mining volumes for each year.

"The state must be present to maintain supply and demand. If the supply is ample while demand is low, the price will drop," mining minister Bahlil Lahadalia told reporters on Friday.

Bahlil said prices and demand from smelters would be used as parameters to calculate the market balance. He declined to give a price target, but said the government's monthly mineral reference price could be used as a guide.

"We will fix the reference price so that it will be proportionate between the industrial products and raw materials, so that maximum profits are not only obtained by the industry, but also by miners," he said.

He also said the mining quota should not be concentrated among big players so business at smaller local miners can grow.

"We hope the industries also procure ores from miners who do not have smelters," he said.

Asia Indonesia Material

Nickel Ore

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