According to reports from various international media outlets on June 11, Indonesian mining officials stated on Tuesday that the government is conducting a comprehensive evaluation of terminating licenses for RKEF smelters. These smelters produce nickel iron and nickel pig iron. Senior official Irwandy Arif from the Ministry of Energy and Mineral Resources highlighted that the government is currently focusing on developing high-pressure acid leach (HPAL) smelters. These smelters extract nickel and cobalt from laterite ore to produce mixed hydroxide precipitate, a precursor material for the battery industry, and nickel matte. It remains uncertain whether the potential terminations will affect existing licenses.
During an industry conference organized by the Shanghai Metal Market, Irwandy mentioned that without further exploration, ore reserves with a grade above 1.5% are expected to last until 2029.
Indonesia, once a major exporter of nickel ore, banned the export of unprocessed nickel in 2020 to attract domestic investment. The Indonesian Nickel Miners Association (APNI) has also urged the government to halt the construction of new pyrometallurgical plants to extend the lifespan of high-grade reserves. High-grade 1.7% nickel ore in Indonesia is primarily used to produce nickel pig iron, a raw material for stainless steel, while lower-grade nickel is used for electric vehicle batteries.
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