- The Minister of Energy and Mineral Resources (“Minister”) recently signed off on a new Regulation of the Minister which specifically prohibits exports of any nickel ores with < 1.7% content levels. This prohibition comes into effect on 1 January 2020, meaning that businesses have a four-month window period in which to adjust to the new policy.
- The new export prohibition is being introduced as an anticipatory measure in relation to nickel smelter facilities, due to the fact that Indonesian nickel reserves amount to only 698 million tons, which may ultimately only supply smelter facilities for another 7.3 years if no new reserves are discovered. Meanwhile, a total of 11 nickel smelter facilities are currently operationally ready, while a further 25 nickel smelter facilities are currently under development.
- A further 2.8 billion tons of nickel reserves which could ultimately supply Indonesian smelter facilities over a production lifespan of 42.67 years will require the relevant authorities to address various issues pertaining to access, licensing (environmental permits) and pricing. Low-content nickel ores remain a crucial resource for the production of lithium-ion batteries, which are increasingly being used in electric vehicles. (esdm.go.id)
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