Forex – The Indonesian government expects nickel prices to stabilize around current levels in the future as new plants balance rising demand and keep the market well supplied.
Septian Hario Seto, in charge of the Ministry of Maritime Affairs and Investment Compliance, said prices on the London Metal Exchange should hover around $15,000 to $16,000 per ton in the short to medium term. An additional 928,000 tonnes of capacity per year is planned to come online in the next three years, producing nickel for multiple electric vehicles.
“I’m not really worried about whether the world needs an increase in nickel supply. Just this capacity increase alone will be enough,” Seto told the International Conference on Critical Minerals and Metals.
Seto said the government would bring the sector together to discuss the rush to supply limonite, an ore typically processed in high-pressure acid leaching plants into battery-grade nickel. Seto said the government was also considering changes to its policy of providing tax holidays for nickel projects, a valuable incentive for foreign companies to set up plants in the country, as Indonesia prepares to implement a global minimum corporate tax rate of 15%.
