Indonesia's nickel policy drives price surge, sparks Swedish mining plans

Indonesia has announced tighter regulations on its nickel industry, cutting production quotas and introducing a new pricing model that is expected to raise global nickel prices. China warned that the changes could jeopardise up to $50 billion of its investments and affect up to 400 000 jobs in the sector.

Indonesia now controls more than two‑thirds of the world’s refined nickel, and the policy shift is prompting interest in other sources. Sweden’s Rönnbäcken project in Västerbotten, identified by consultancy SRK as Europe’s largest undeveloped nickel deposit with an estimated 600 million tonnes of ore, could produce about 23 000 tonnes of nickel per year for 20 years. Swedish company Bluelake Mineral is seeking partners and financing to bring the mine into operation within the next four to seven years, betting on the rising demand for nickel in electric‑vehicle batteries.

Analysts see the price increase as a potential catalyst for developing the Swedish deposit, while Chinese firms operating in Indonesia face reduced output under the new rules.