Indonesia nickel plant QMB cuts production after safety checks, sources say

Published: Nov 21, 2025 23:57

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QMB New Energy Materials, an Indonesia-based nickel and cobalt joint venture led by China’s GEM, was forced to cut production by at least half after safety inspections by the environmental ministry identified issues with the company’s tailings storage, according to people familiar with the matter. The company’s nickel equivalent output in December 2025 may decrease by as much as 6,000 tonnes, and the reduction could continue into the first quarter of 2026, with the possibility of further declines, one source said. QMB had previously suspended nearly all production in March following a fatal tailings landslide that killed four workers, prompting stricter government oversight of tailings management. Located in the IMIP industrial park on Sulawesi Island, QMB produces mixed hydroxide precipitate (MHP), which contains nickel and cobalt for battery manufacturing, and has an annual production capacity of 96,000 tonnes of nickel equivalent. GEM holds a 63% stake in the venture, with other shareholders including Tsingshan, Brunp (a CATL subsidiary), EcoPro, and Japan’s Hanwa. Earlier, the Indonesian environment ministry ordered IMIP to rectify issues after discovering 12 million tonnes of illegally stored tailings.

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