Indonesia: Weda Bay mine suspension highlights tightening nickel ore supply controls

• RKAB quota exhaustion halts mining operations at key supplier
• Higher Philippine ore imports may support nickel prices

SteelDaily: Indonesia’s efforts to tighten control over its nickel sector have begun to impact physical supply, with Weda Bay Nickel suspending mining operations after exhausting its annual production quota (RKAB).

Weda Bay Nickel, jointly owned by France’s Eramet, China’s Tsingshan Group and Indonesia’s state-owned miner Antam, halted operations in late May after reaching its approved 2026 mining quota of 12 million wet metric tonnes (WMT). The permitted volume represents a sharp reduction from the mine’s actual output of 42 million WMT in 2025.

Supply concerns emerge

According to industry sources, Weda Bay Nickel is currently seeking an extension of its mining permit from Indonesia’s Ministry of Mines. The mine has entered a maintenance phase while awaiting regulatory approval.

The development has drawn significant attention as Weda Bay is one of the largest nickel ore suppliers to Indonesia’s Weda Bay Industrial Park (IWIP), providing around 42 million WMT of ore last year, equivalent to nearly one-third of the industrial park’s total processing requirements.

Market participants estimate that IWIP could face a nickel ore shortage of around 30 million WMT if additional quotas are not approved before the government’s next RKAB review cycle, typically conducted before the end of July.

Nickel market sentiment turns firmer

Industry participants noted that Indonesia’s stricter quota management policy is aimed at supporting nickel prices and strengthening state control over strategic mineral resources. The uncertainty surrounding additional approvals has already strengthened sentiment across the nickel value chain.

Market participants added that prolonged supply constraints could increase Indonesia’s dependence on Philippine nickel ore imports, potentially tightening regional ore availability and raising raw material costs for nickel pig iron (NPI) and stainless steel producers.

Outlook

The outcome of Weda Bay Nickel’s quota extension request will remain a key factor for the global nickel market in the coming weeks. Delays in additional approvals could tighten ore supply, support nickel prices and increase cost pressures across the stainless steel supply chain.