- Supply uncertainty eases for major nickel miners
- Indonesia begins 2026 RKAB approvals process
SteelDaily: Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has officially begun approving the 2026 Mining Sector Work Plan and Budget (RKAB), including projects operated by state-owned miner PT Aneka Tambang Tbk (Antam) and major producer PT Vale Indonesia Tbk, easing concerns over near-term nickel supply disruptions.
Tri Winarno, Director of Minerals and Coal at ESDM, confirmed that Antam has secured RKAB approval for several of its mining operations for 2026. He added that multiple private miners have also received approvals, though the ministry did not disclose the total number of RKABs cleared so far.
The development comes after weeks of market uncertainty, as delayed approvals earlier this month had raised the risk of operational halts at major nickel producers. In early January, companies including PT Vale Indonesia had warned of potential production disruptions due to pending quotas, fuelling sharp price volatility in the nickel market.
Despite the approvals, overall production allowances are expected to be lower than last year. The Indonesian government continues to pursue a supply management strategy aimed at supporting nickel prices and maximising national revenue amid global oversupply pressures. Market participants believe Jakarta is targeting a price floor of around $17,000-18,000/t.
Earlier, PT Vale Indonesia’s CEO Bernardus Irmanto had sought parliamentary support to expand the company’s nickel ore quota, even after securing RKAB approval. In response, the ministry clarified that producers may submit revised RKAB proposals between April and July 2026, offering flexibility while retaining supply discipline.
The commencement of approvals is widely viewed as a stabilising move for the nickel supply chain, particularly for state-owned enterprises, helping avert worst-case disruptions while keeping output growth in check.
Outlook
Nickel supply risks are expected to ease in the short term as approvals progress. However, with tighter quotas and continued policy intervention, prices are likely to remain supported, limiting downside despite muted global stainless steel demand.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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