【SMM Nickel Flash News】Indonesia Revises Nickel Ore HPM Formula, 1.2% Ni HPM Falls 45%

Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has issued Kepmen ESDM No.363.K/MB.01/MEM.B/2026, effective September 15, revising the nickel ore HPM formula introduced under Kepmen No.144.K/MB.01/MEM.B/2026.

The latest revision mainly lowers the nickel correction factor (CF) and cobalt coefficient for low-grade limonite. For 1.2% Ni ore, the revised HPM is $24.89/wmt, down $20.08/wmt, or 45%, from $44.97/wmt under the previous formula. The revised HPM is also below SMM’s current delivered price of $27/wmt.

At a 14% royalty rate, the royalty based on the revised HPM is approximately $3.48/wmt, compared with $3.78/wmt based on the actual transaction price. The adjustment is expected to narrow the gap between HPM and market prices and reduce the tax burden on low-grade limonite miners. The impact on HPAL plants’ actual raw material costs is expected to be limited, as market prices have already remained below the previous HPM.