The Indonesian Nickel Miners Association (APNI) has stated that the Ministry of Energy and Mineral Resources (ESDM) is set to revise the Nickel Benchmark Price (HPM) formula by January or February 2026.
A major shift in this revision is the recognition of associated minerals, specifically Cobalt, as distinct commodities subject to royalties. Currently, cobalt content in nickel ore is often untaxed and unpriced, despite its high value in the EV battery supply chain (NMC cathodes).
Key Highlights according to APNI:
- New Revenue Stream: By charging royalties on cobalt (even at small concentrations of ~0.1%), the state could potentially gain an additional US$600 million in revenue.
- Proposed Royalties: The government is considering a single tariff of 1.5% for cobalt and 2% for cobalt associated with nickel matte.
- Fairness for Miners: APNI argues that monetizing associated minerals like cobalt and iron (Fe) is a better alternative than increasing progressive royalty rates on nickel itself, ensuring a "fair" business climate.
- Structural Changes: The revision may include a shift in transaction units from US$/DMT to US$/pure nickel unit, aligning with international market standards.
![[SMM Analysis] H1 '26 Sulfur Industry Chain Review: Extreme Volatility Under Supply Shocks.](https://imgqn.smm.cn/usercenter/KTLHT20251217171714.jpeg)
