【SMM Nickel Flash】Sinergi Lestari Targets 2 Million mt of Nickel Ore Trading in 2026

Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has issued Kepmen ESDM No. 365.K/MB.01/MEM.B/2026, tightening requirements on the use of mining-service contractors by mineral and coal mining companies. Under the regulation, IUP/IUPK holders are required to prioritise licensed mining-service companies (IUJP) located in the same regency/city as the mining operation. The use of subsidiaries or affiliated companies as mining contractors is restricted and requires approval from the Minister of ESDM, including arrangements involving direct shareholding or common ultimate beneficial ownership. Applications are subject to a review process, while exemptions may apply to government-assigned activities, including National Strategic Projects, construction of processing and refining facilities, and activities supporting domestic mineral and coal requirements. For the nickel sector, the regulation does not directly change RKAB quotas or nickel ore pricing. However, nickel mining groups may need to review existing affiliated-contractor arrangements, while the new requirements could affect contractor selection, mining costs and operational arrangements.

Hinatuan Mining Corporation’s Tagana-an Nickel Project in Surigao del Norte, Philippines, is expected to have economically recoverable reserves sufficient to sustain commercial mining operations only until the end of October 2026, according to a Philippine Stock Exchange filing. The company plans to begin activities under its Final Mine Rehabilitation and Decommissioning Plan in January 2027 following the planned cessation of commercial operations. Hinatuan Mining will continue operating its Manicani Island nickel project in Eastern Samar. The end of commercial operations at Tagana-an could reduce Philippine nickel ore supply from November, although the company stated that the planned cessation currently has no material impact on its overall business.

The Central Sulawesi provincial government emphasized that nickel and other mineral resources should be processed domestically into finished products rather than being exported as raw or semi-processed materials. Deputy Governor Reny A. Lamadjido said deeper downstreaming would increase the economic value captured by the region, create employment and support the development of businesses around industrial areas. Central Sulawesi currently has 151 mining business permits (IUPs) and 293 permits for non-metallic minerals and rocks. Processing industries accounted for 44.37% of the province's GDP in Q2 2026, while mining and quarrying contributed 13.79%, highlighting the importance of the mining-processing sector to the regional economy.