In mid-August 2023, the Indonesian government investigated and dealt with illegal nickel ores and stopped the approval of new quota applications. The news caused the market to pay close attention.
The local nickel ore market in Indonesia has large illegal mining. Illegal mining behaviors include, but are not limited to: exporting ores without IUP qualification, continuing to export ores after the quota has been used up, quotas can only be used for own smelting and exporting nickel ore in the name of iron ore, etc.
The Indonesian government's investigation into the integrity of the mining industry has led to the illegal trading of nickel resources, which has been exposed to the public. According to statistics from APNI, the Indonesian Nickel Mining Association, it is understood that the total consumption of Indonesian nickel ores will be around 101 million wet tons in 2022, and is expected to reach 168 million wet tons in 2023.
According to APNI, based on 2022 data, 50% of this is shipped as illegal ore.
About 20 percent of this 50% illegal ore trade comes from unqualified IUP mining, which has now been halted. The remaining 30% is currently unaccounted for.
There is also a risk that new applications for mine quotas, which were expected to be approved in October this year, will be delayed. A series of news points to Indonesia's local nickel ore supply will face a tighter situation in the short term.
Written by Nickel Research, if you have any questions about the nickel market, please don't hesiatte to talk with me Fancyli@smm.cn
