SMM Revises Down 2017 Nickel Ore Exports from Indonesia

Published: Apr 1, 2017 09:49

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News heard over this past week that 4 Indonesian nickel ore mining firms are applying for ore export quotas, and SMM revises Indonesian nickel ore exports in 2017.

SHANGHAI, Apr. 1 (SMM) – News heard over this past week that 4 Indonesian nickel ore mining firms are applying for ore export quotas, and Antam got the initial clearance for Indonesian nickel ore exports. But, the export quota of 2.70 million WMT is much below its application amount of 6 million WMT, raising market doubts over 2017 nickel ore shipments from Indonesia, world’s number one nickel ore supplier before its 2014 export ore ban.

How Many Nickel Ore to Go to China from Indonesia before Quota Decision? SMM Reports

After evaluating the other three applicants, SMM expects 2017 nickel ore exports from Indonesia to reach about 5.70-6.70 million WMT, lower than the previous estimation of 8-10 million WMT, with details below.

Nickel Ore Export Quota Estimation on Four Indonesian Ore Miners

Mine	Smelter	Capacity (1,000 tonne)	NPI Grade (%)	Ore Consumption (1,000 WMT)	Export Quota for Application (1,000 WMT)	Approved Export Quota (E) (1,000 WMT)
Antam	Antam	120	25%	3000	6000	2700 (confirmed)
Fajar Bhakti Lintas	Eastern Special Steel	90	10%	1000		1000 (SMM estimation)
Ifishdeco	Bintang Smelter	50	10%	500	1000	500-1000 (SMM estimation)
Central Omega	PT Macrolink Nickel Development	260	10%	2500	3000	1500-2000 (SMM estimation)
Nickel ore export estimation for 2017						5700-6700

Source: SMM

According to Antam’s confirmed export quota and estimated approval quota by the other three applicants (in table above), SMM judges that Indonesia determines export quota for each applicant based on ore consumption at its processing and refining facilities which are in operation and under construction.

SMM contacted Antam about the export time, and the company said it was still waiting for the recommendation to be officially issued by the mining ministry, so it was difficult to give an accurate date. Market is ready for Indonesian nickel ore except Indonesian government’s yes nod.

Based on current approval progress in the country, SMM foresees that total nickel ore exports from Indonesian and incremental volumes in 2017 will not be big even of the country expands the scope of applicants.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.

nickel ore Indonesian export ban nickel ore inventory

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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