Nickel Smelter Moratorium Sets to Keep Business in Balance

The Energy and Mineral Resources Ministry will limit the construction of class II nickel smelters to maintain the balance of nickel ore supply and demand, which is increasingly unbalanced. Special Staff of the Energy Minister for the Acceleration of Mineral and Coal Governance Irwandy Arif said the decision was taken so that Indonesia would not become a nickel ore importer in the future.

According to Irwandy, this moratorium is intended to ensure smelters that have been built continue to get nickel ore supplies for the sustainability of production operations. "The government will no longer issue permits for the construction of smelters for class II nickel pyrometallurgical process," he said on Thursday. Prometindo Advisory Board Member Arif Tiammar supports this policy to limit excessive production. "Even though we have huge reserves on the hydrometallurgical side," Arif said.