SMM Analysis: Nickel Ore Quota Arouses Concern What is the current approval progress?

According to public data, as of February 26, 2024, Indonesia has approved a quota of 145 million wet tons of nickel ore (for 2024), and it is understood that before that, the quota for nickel ore was approved once a year. Now it is divided into two types, if the mine is in the exploration stage, RKAB will approve it once a year, and if the mine is already in the operation stage, it can be approved every three years, and the quota will be reported for three years at a time. As a result, under the implementation of the new system, the approval speed of nickel ore quota approval has also slowed down compared with previous years. According to SMM estimates, the total consumption of nickel ore in Indonesia is expected to be 241 million wet tons in 2024. As a result, the current approved nickel ore quota accounts for 60% of the demand, and it is expected that the subsequent approval volume will continue to rise, and the proportion will gradually expand.

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