Alleged Cartel Practices in Nickel Mining

The Indonesian Nickel Mining Association (APNI) complained of alleged cartels and unfair business competition involving smelters to the Business Competition Supervisory Commission (KPPU). This allegation arose after large smelters controlled the market and set relatively low purchase prices from nickel mining companies.

APNI Secretary-General Meidy Katrin Lengkey said two large-scale nickel smelters purchased 60 percent of the commodity below international prices. These companies bought the commodity from the mine under US$ 31 per metric ton, although the benchmark price on the Shanghai Metal Market reached US$ 46 per metric ton.