- Govt aims to complete approval process by end-Mar’26
- Ore prices remain firm amid policy-driven uncertainty
SteelDaily: Indonesia has accelerated approvals for its 2026 Mining Business Plan and Budget (RKAB), with cleared nickel volumes surpassing 100 million tonnes (mnt) as of mid-March, according to the Ministry of Energy and Mineral Resources. The government aims to complete the approval process by end-March, signalling efforts to restore clarity in the nickel supply chain amid ongoing policy transitions.
The move comes as authorities streamline approvals through a newly introduced online system, addressing earlier data synchronisation challenges that had delayed clearances. Coal RKAB approvals have also progressed in parallel, nearing 400 mnt, reflecting broader momentum across the mining sector.
NPI capacity expansion gains traction
With RKAB approvals advancing, downstream nickel projects are witnessing renewed activity. A refurbishment project at a nickel pig iron (NPI) smelter operated by Jinchuan Group’s Indonesian arm has commenced on Obi Island. The upgrade is expected to enhance rotary kiln-electric furnace (RKEF) process efficiency and increase NPI output by around 20% y-o-y once completed.
In parallel, Chinese firms continue to strengthen their presence in Indonesia’s mining sector. A major contract worth approximately RMB 5.45 billion has been awarded for nickel mining operations in Southeast Sulawesi, covering extraction, logistics, and shipment over a five-year period.
Ore prices hold firm
According to sources, Indonesia’s domestic nickel ore prices remained stable, with 1.5% Ni grade assessed at $78-81/wmt CIF and 1.2% grade at $30-35/wmt CIF. Prices continue to be supported by tight regulatory control and expectations of disciplined supply growth.
Outlook
Indonesia’s accelerated RKAB approvals are likely to ease near-term supply uncertainties, but continued policy oversight and quota management will remain key in shaping global nickel availability and price direction.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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