[SMM Nickel Market Flash] Tanzania's Kabanga Nickel Draws Reported $500m US-Backed Interest; FID Slips to Q1 2027

Tokyo-based stainless steel maker Nippon Kinzoku has begun mass production of ultra-thin, narrow-width stainless steel optimised for laser welding in ultra-fine insulin needles, the company said in a statement carried by Bernama on August 27. It said a stable supply system is now in place after trials with leading needle makers. The needle industry is shifting from TIG or plasma welding to laser welding, which allows faster welding and base material more than 50% thinner at the initial stage — 0.08 mm versus 0.2 mm previously — supporting wider use of 30G to 32G needles in pen injectors. Its NK-304NKM grade, used in thin-walled welded tube for medical and cosmetic uses, holds about 57% share in Japan and 55% in key overseas regions, per company research in March 2026.

South Korea has set out what it wants from Indonesia on nickel, citing incentives for nickel-based batteries and consistent policy, Jakarta Globe reported on August 27. Uhm Taeho, political section chief at the Korean Embassy, told a Jakarta media workshop that Seoul is looking for incentives and easier rules for nickel-based batteries, which he said are recyclable and cleaner but cost slightly more, with incentives meant to close that gap. Asked about Indonesia's one-gate export policy channelling strategic commodity exports through Danantara unit DSI, which covers the ferroalloys Korea buys for steelmaking, he said Korea respects the policy but that consistency and predictability matter for investment. Indonesia is expected to detail EV incentives soon after repeated delays.

Nickel Industries (ASX: NIC) said in its H1 2026 results that Indonesia's HPM benchmark reform sharply raised realised ore prices at its 80%-held Hengjaya Mine, with the average sale price up 28% YoY to US$31.3/wmt — saprolite up 55% to US$40.4/wmt while limonite eased 8% to US$21.2/wmt. Unit operating costs rose 50% to US$18.7/wmt on higher royalties under the new HPM, cutting the EBITDA margin from 49% to 40%; adjusted EBITDA rose just 4% to US$73.4m on flat sales of 5.9m wmt, achieved despite a 14-day suspension. NIC also flagged a 2026 RKAB quota of 14.3m wmt, up 60%, which it said compares favourably with peers.