- Restart follows approval from Indonesian authorities
- Production quota stands at 12 mnt in 2026 against 42 mnt in 2025
PT Weda Bay Nickel (PT WBN) has resumed mining operations in Indonesia after completing a four-month care and maintenance period, following approval from Indonesian authorities.
French mining company Eramet, which operates the mine, said the restart will take place in stages as partners, equipment and personnel are redeployed to the site. The company also needs to re-establish its annual mining plan and complete related administrative procedures.
As a result, the timing of full-scale production normalisation remains uncertain, and Eramet said it is currently difficult to provide reliable estimates for nickel ore production, sales volumes and ore grades for the remainder of 2026.
Reduced RKAB quota led to suspension
The suspension was linked to a sharp reduction in PT WBN’s approved 2026 RKAB (annual work plan and budget) compared with previous years.
The Indonesian government initially approved 12 million tonnes (mnt) of nickel ore production and sales for PT WBN in 2026, including 9 mnt for external sales.
This was significantly lower than the company’s approved volumes for 2025. PT WBN had initially received approval for 32 mnt under its 2025 RKAB, which was subsequently increased to 42 mnt in July 2025.
Eramet had said in April that the initial 12-mnt allowance for 2026 was expected to be exhausted by mid-May, following which the mine was placed under care and maintenance while awaiting approval for an increase in the RKAB allocation.
Focus shifts to quota increase and production ramp-up
Eramet subsequently requested an upward adjustment to PT WBN’s 2026 RKAB allocation, with the approval process still ongoing in July.
With mining now resumed, nickel ore supply from the Weda Bay region is expected to restart gradually. However, the pace of production ramp-up will depend on the redeployment of equipment and partners, adjustments to the mining plan and completion of administrative procedures.
Eramet plans to provide guidance on 2026 external nickel ore sales as production normalisation progresses.
Market sentiment
The restart is mildly bearish for nickel supply expectations, as additional Indonesian ore availability could improve near-term supply. However, the impact is likely to remain limited initially given the gradual restart and uncertainty over the final 2026 production allocation.
PT WBN’s year-end production and sales volumes remain uncertain, with the extent of the ramp-up dependent on the revised RKAB allocation and operational normalisation.
Note: This article is published as part of a content exchange agreement between SteelDaily and BigMint.
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