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Indonesia nickel quota, production, and energy challenges

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2026-08-04 12:53 UTC → 2026-08-10 08:22 UTC · added removed

Indonesia nickel quota quota, production, and production energy challenges

In the second quarter of 2026 2026, Indonesia’s nickel sector recorded saw a sharp significant rise in output and sales, with output. Vale Indonesia reporting over a reported selling 1.07 million wet metric tons of ore sold from its Bahodopi block and 495,601 WMT from its Pomalaa block, while achieving a 19 % 19% increase in nickel matte production. At the same time, tighter inspection rules introduced by the Indonesian government slowed exports However, export of mixed-hydroxide-precipitate (MHP) and other products from Chinese smelter Tsingshan Holding, raising concerns about global supply Holding Group faced delays due to new government inspection rules requiring additional testing for stainless‑steel rare-earth and EV batteries. Later in July, radioactive elements. Market volatility increased following the Energy and Mineral Resources Ministry moved to review July 31 closure of the 2026 RKAB (Work Plan and Budget) nickel quota. The closure of the quota application window window. This triggered a rally in nickel futures and spot prices. prices, which reached approximately US$17,048 per tonne in July. The government signaled Energy and Mineral Resources Ministry is currently reviewing quota revisions, with Minister Bahlil Lahadalia signaling a “measured relaxation” of quotas, favoring firms that pay prioritizes firms paying higher royalties, while royalties. These adjustments are expected to be finalized in August or September. Concurrently, the exact scale of any increase remained undisclosed. Analysts noted that refined‑nickel supply remained tight, with nickel processing sector faces potential disruptions from nationwide electricity shortages. These outages, driven by a shortfall of 1.34 million tonnes reduction in May, suggesting continued price volatility. Together, the production surge, export constraints, coal mining quotas and pending quota adjustments illustrate Indonesia’s ongoing shift toward greater domestic issues with the Domestic Market Obligation (DMO) policy, threaten the stability of the processing and tighter control over nickel exports, influencing both regional trade dynamics and plants vital to the global metal markets. stainless steel and electric vehicle battery supply chains.

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  1. 2026-08-10 08:22 UTC Indonesia nickel quota, production, and energy challenges
  2. 2026-08-04 12:53 UTC Indonesia nickel quota and production

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