Nickel price jumps as Indonesia slashes quota at world’s biggest mine

{"text":[[{"start":13.69,"text":"Nickel prices jumped on Wednesday after the Indonesian government ordered a steep cut in production at the world’s biggest nickel mine, tightening supply from the country that has rapidly become the dominant global producer of the metal."}],[{"start":29.619999999999997,"text":"Production at Weda Bay, a mining complex operated by French miner Eramet and Chinese nickel group Tsingshan Holding, will be capped at 12mn tonnes of nickel ore this year, a steep reduction from the mine’s 42mn tonne quota set by Jakarta in 2025, Eramet said on Wednesday. "}],[{"start":52.66,"text":"The London benchmark price of nickel rose 2 per cent to almost $18,000 a tonne. It has been rising this year to levels not seen since 2024 in response to expected quota cuts in Indonesia. "}],[{"start":68.25999999999999,"text":"The country intends to slash quotas across its nickel industry in 2026. Authorities said this week that total quotas for nickel ore production would be cut by more than 100mn tonnes to between 260mn and 270mn tonnes this year, down from 379mn tonnes in 2025."}],[{"start":92.54999999999998,"text":"Indonesia has emerged as a nickel powerhouse over the past decade, growing from a minor market player to by far the biggest producer worldwide, accounting for two-thirds of global output."}],[{"start":105.84999999999998,"text":"But overproduction in recent years has weighed on the price of the metal, used to make stainless steel and electric vehicle batteries. Authorities have taken steps to limit output through a permits and quotas system, in a bid to drive up prices to support domestic companies facing shrinking margins and losses."}],[{"start":null,"text":"

"}],[{"start":127.84999999999998,"text":"The benchmark price briefly rose to more than $100,000 a tonne in 2022 but has languished below $20,000 for the past 18 months. "}],[{"start":141.04,"text":"Paris-listed Eramet, currently in the midst of a governance crisis, has suffered from the collapse in prices. Its western rivals in other regions have also struggled to compete with low-cost operators in Indonesia. "}],[{"start":156.19,"text":"Mining major BHP, once one of the world’s largest nickel producers, is among several western miners to have closed their nickel operations in the context of oversupply. London-listed Anglo American is in the process of selling its nickel operations to MMG Singapore Resources, part of Chinese-controlled MMG."}],[{"start":179.23,"text":"Indonesia banned the export of unprocessed nickel ore in 2020, a move designed to force companies to set up refineries in the country. This propelled the growth of a domestic industry, driven by huge investments from Chinese groups. "}],[{"start":196.57999999999998,"text":"The country accounted for about 65 per cent of global refined nickel supply in 2025, up from 6 per cent in 2015, with its share expected to keep growing this decade, according to Macquarie."}],[{"start":213.05999999999997,"text":"Eramet said it was “committed to maintaining a constructive and ongoing dialogue” with Indonesian authorities and that it planned to apply for “a revision of this production quota to a higher volume”. "}],[{"start":227.50999999999996,"text":"In January, Brazilian miner Vale said it had been forced to pause its nickel mining operations in the country as it had not received the necessary approvals and quotas from authorities for 2026."}],[{"start":250.93999999999997,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1770851967_7513.mp3"}