Indonesia has unveiled plans to limit nickel smelters construction to ensure new plants produce high-value products, reported Reuters citing a report by state news agency Antara.

Indonesia Investment Minister Bahlil Lahadalia said the country, which has several smelters that produce nickel pig iron or ferronickel, requires prioritising the use of ore reserves to create higher value materials including materials for electric vehicles’ batteries.

The news agency quoted Lahadalia as saying: “Now we prefer to push downstreaming with 80% to 100% value addition.”

The country is also considering mandating new nickel smelters to follow green principles during production.

Lahadalia said that new smelters would be powered by green energy, unlike the country’s existing smelters that often make use of coal energy.

The minister added: “Looking forward, we will limit the development of smelters that are not oriented towards green energy.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In 2020, Indonesia imposed a ban on exports of unprocessed nickel ore to promote the domestic development of nickel smelting.

Earlier, an Indonesian Energy Ministry senior official said that high-grade nickel ore reserve in the country will last less than two decades if restrictions are not imposed on the construction of smelters.

Last October, Reuters reported that US-based mining company Freeport-McMoRan was in preliminary talks with the Indonesian Government to extend its rights to the Grasberg copper mine past 2041.

Located in the province of Papua, Grasberg is claimed to hold one of the world’s largest copper and gold deposits.