JAKARTA (TheInsiderStories) - Indonesian government estimates that nickel ore production will nearly triple to 71.40 wet million tones (WMT) in 2023 along with the construction of 30 new nickel smelters, the regulation of energy and mineral resources minister Number 16 of 2020 stated. This year’ the national producer is estimating to produce 19.31 MT.
The minister, Arifin Tasrif, has signed the rule on Sept. 18 and effective since Sept. 25, 2020. In the regulation, it stated in 2021, the nickel ore production will reach 30.10 WMT, then increases to 59.94 WMT in 2022, and 71.74 WMT in 2023.
Followed the increase of nickel ore, the processed of the minerals also increased. Domestically processed ore is targeted to increase to 52.14 WMT in 2024 from 12.77 WMT in 2020. There are also an increase in the ratio of nickel ore processed from 66 percent in 2020 to 73 percent in 2024.
The utilization of refined nickel smelters such as ferronickel and nickel pig iron is also targeting rises to 75 percent by 2024 from 70 percent in this year. While, nickel matte from 90 percent to 95 percent. Earlier, the special staff at the ministry, Irwandy Arif, said there are 48 smelters currently being built and targeted to operate in 2024, as many as 30 are nickel smelters.
Despite, the government optimism, Indonesian Nickel Mining Association sees the nickel ore production drops 52 percent to 25 WMT in this year, local media reported. The declined caused large of miners did not carry out their production activities in 2019 and the prices to low.
As for last year, based on the the association data, said the secretary general Meidy Katrin Lengkey, low-grade nickel ore production was able to reach 52.76 WMT, up 138 percent from the realization of production in 2018, which reached 22.14 WMT. This year, the organization predicted the production to reach 25 WMT by adding the capacity production has not been able to meet the needs of 12 smelter units has operated in Indonesia.
Since the ban on nickel ore exports, said Lengkey, many miners have chosen not to carry out mining activities cause the local prices are still too low. She hopes that the government could immediately issue binding regulations regarding the benchmark mineral prices and the imposition of sanctions.
She believed that in the next six months, the supply or availability of nickel ore in several smelters is running out or definitely stop.
“There are several smelters that have been added to the production line, automatic demand for nickel ore raw materials has increased as well. There are 2 new smelters which have started production this year too,” said Meidy
Written by Editorial Staff, Email: theinsiderstories@gmail.com
