Posted on 14 Jan 2025
Indonesia has reportedly set a nickel ore mining quota of around 200 million tonnes for 2025. This figure could be further reduced if miners fail to meet environmental and regulatory standards, according to Reuters.
“We have issued around 200 million tonnes. But if based on their performance evaluation, especially post-mining reclamation and environmental management (not meeting government requirements), we will cut,” Tri Winarno, director general of mineral and coal at the ministry, was quoted as saying.
Last week, the country’s energy and mineral resources minister Bahlil Lahadalia said that Indonesia is reviewing its mining quota to curb further price declines. The LME nickel price dropped towards $15,000/tonne earlier this year, hitting a four-year low driven by a supply glut led primarily by Indonesia.
The country produced 215m tonnes of nickel ore last year, according to Tri.
Amid growing scrutiny on ESG standards, the Indonesian government warned it may penalise companies violating environmental and other regulations by slashing their mining quotas.
The country had previously approved annual nickel ore mining quotas of 240m t through 2026. However, Bloomberg reported in December that authorities were weighing a reduction to 150m t to support prices.
The energy and minerals resources ministry is yet to publicly announce the quotas, Kallanish notes.
Source:Kallanish
