- Eramet Q2 NPI output fell 2.5% y-o-y
- Weda Bay ore production plunged amid RKAB limits
French miner Eramet’s combined nickel pig iron (NPI) and ferronickel production declined 1.2% y-o-y to 16,500 tonnes in Q2 2026. NPI production at the Weda Bay Nickel project in Indonesia fell 2.5% y-o-y to 7,700 tonnes, while ferronickel production at New Caledonia’s SLN remained stable at 8,800 tonnes.
On a quarterly basis, Weda Bay’s NPI production declined 14.4%, while SLN’s ferronickel output fell 5.4%.
Weda Bay ore output plunges
Weda Bay’s nickel ore operations were significantly affected by Indonesia’s RKAB restrictions. Sellable nickel ore production declined 74% y-o-y to 1.842 million wet tonnes (wmt) in Q2, while external ore sales fell 81% y-o-y to 1.073 million wmt.
The sharp decline followed exhaustion of the mine’s approved RKAB quota. The Weda Bay mine subsequently entered a maintenance and management phase in May.
RKAB quota remains key constraint
Weda Bay received approval for a combined nickel ore production and sales quota of 12 million wmt for 2026, including 3 million wmt allocated to its captive NPI plant. The approved volume was significantly below the 32 million wmt quota approved in 2025.
Eramet applied to Indonesian authorities in July for an upward revision to its 2026 RKAB, citing insufficient approved volumes against demand from the Indonesia Weda Bay Industrial Park (IWIP), where annual nickel ore requirements are estimated at more than 110 million wmt.
NPI operations remain operational
Despite the mine’s quota-related restrictions, the Weda Bay NPI plant continued normal operations. First-half NPI production reached 16,700 tonnes, down 2% y-o-y.
The continued operation of the NPI facility highlights the importance of securing additional ore allocations as the company seeks to maintain production levels in Indonesia.
SLN costs increase
In New Caledonia, SLN’s nickel ore production increased 10% y-o-y to 1.54 million wmt in H1 2026, while ferronickel production rose 3% to 18,100 tonnes.
However, SLN’s cash production cost for ferronickel increased 6% y-o-y to $8.5/lb, compared with $8.0/lb a year earlier. Higher energy costs and unfavourable exchange-rate movements contributed to the increase.
Global nickel market tightens
Eramet estimated global primary nickel demand at 1.8 million tonnes in H1 2026, up 6% y-o-y, while production declined 4% to 1.7 million tonnes.
The company attributed the tightening market balance to lower Indonesian NPI production and raw material supply constraints linked to RKAB restrictions.
Outlook
Indonesia’s RKAB approvals and the timing of additional allocations at Weda Bay will remain key factors for Eramet’s Indonesian operations. A higher quota could support the resumption of normal mining activity, while prolonged restrictions could continue to constrain ore availability and NPI production.
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