Despite calls from the Indonesia Nickel Miners Association (APNI) to impose a moratorium on new nickel smelter construction, the Indonesian government maintains that the country’s nickel reserves are sufficient to support expanded processing operations.
Mohamad Faizal, the director for downstream strategic investment at the Investment Ministry, stated that Indonesia’s high-grade nickel reserves will last until 2035, while low-grade nickel supply is sufficient until at least 2069. This, he said, demonstrates the potential for further expansion in both stainless steel and electric vehicle (EV) battery production.
Indonesia banned nickel ore exports in 2020 to encourage domestic value addition, leading to significant investment in the construction of nickel pig iron (NPI) and battery material production facilities. Faizal noted that these reserves can help position Indonesia among the top five EV battery producers and top two stainless steel makers by 2040.
However, the APNI has urged the government to impose a moratorium on new pyrometallurgy plants to extend the lifetime of the country’s high-grade nickel reserves, which the association warned may be depleted in about six years.
Meidy Katrin Lengkey, the secretary-general of APNI, argued that domestic processing ore consumption will rise 34% this year, and that the government needs to stop the construction of new smelters. She stated that a moratorium proposal has been made to the incoming president, Prabowo Subianto, but no decision has been reached yet.
Faizal, on the other hand, said that smelters can continue to be built if they produce different types of products, indicating the government’s willingness to support further expansion of the nickel processing industry. He also noted that reserves can be increased through exploration, although this is complicated by the fact that most potential mines are located in designated forest areas.
The conflicting views between the government and the miners’ association highlight the ongoing debate over the management of Indonesia’s valuable nickel resources and the balancing act between short-term economic gains and long-term sustainability.