The reference mineral price of nickel in Indonesia hit a record high in the past decade.

(ESDM) of the Ministry of Energy and Mineral Resources of Indonesia issued decision 8.K/MB.01/MEM.B/2022 on reference metal mineral prices and reference coal prices for January 2022.

In the decree of the Minister of Energy and Mineral Resources, the reference mineral price for nickel was set at $20189.75 per dry tonne (dmt), up 1.82 per cent or $360.4 from December last year.

The consumption of LME and Shanghai inventory led to sharp price fluctuations at the end of last year, which led to a rise in the domestic nickel benchmark price (HPM) in January.

The nickel content obtained from the $20189.75 HMA,HPM is 1.8% (FOB) 30% (FOB) is US $48.33 / wet metric ton (wmt). This figure is the highest price in the country's nickel trading system in the past decade.

It should be noted that the HPM calculation is based on the formula set out in the decree No. 2946 K/30/MEM/2017 of the Minister of Energy and Mineral Resources on the formula for determining the benchmark price of metal minerals.

The variables in the HPM calculation formula include HMA, constant correction factor (CF) and water content, or commonly referred to as MC.

CF is determined as a constant, in which every 0.1% increase in grade increases the constant by 1%, so the CF constant is 19% for 1.8% nickel and 20% for 1.9%. Humidity level (MC) values are usually between 30 and 35%.

It should also be noted that all HPM rules are FOB (FOB) prices, that is, the price at the port of loading. The purpose of determining HPM at the FOB rate is to do justice to the miners, because the distance between the loading port and the loading port is not the same, so pricing at the loading port is the right decision.

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