From MetalMiner, February 28:
The global nickel mining industry is under stress, and the primary reason is an oversupply of low-cost nickel from Indonesia. Moreover, this constant supply continues to support a major global surplus, placing downward pressure on the nickel price. At this point, the Southeast Asian nation has already cornered more than half of the world’s supply of this critical metal.
Indonesia’s ascent as the leading player in the global nickel industry, leveraging Chinese capital and innovation, proved remarkable. In fact, according to this report, the country’s dominance comes despite concerted resistance from the European Union via the World Trade Organization.
In just over a decade or so, Indonesia managed to completely transform its nickel export business while surging its mine output nine-fold. Together, China and Indonesia now produce about 70% of the world’s total nickel supply. Unable to compete with the formidable capital and low operating costs of Indonesian operations, competitor nickel miners in Australia and elsewhere could potentially go out of business.
The current nickel price could change rapidly. MetalMiner can help your organization navigate volatile nickel markets using AI technology. Read more here.
Mining Companies, Experts Warn of Shutdowns
French miner Eramet recently warned that the day is not far off when Indonesia will cement its position as the world’s number one supplier, wiping out its rivals. Indeed, the Financial Times quoted CEO Christel Bories as saying Indonesia could end up supplying over three-quarters of the world’s highest class of pure nickel in another five years. Hidden somewhere between the lines was the message – “competitors beware.”
Andrew Forrest, Founder and Chairman of Fortescue Metals Group and one of the richest people in Australia, recently asked the London Metal Exchange to understand the difference between “dirty” and “clean” nickel. Fearing the closure of mines, he told reporters that the Exchange must learn to segregate nickel based on its associated carbon emissions, allowing purchasers to choose the sustainability of their products. Andrew was perhaps referring to companies using batteries from cheap nickel mined in Indonesia, which many accuse of having a higher emissions footprint....
....MUCH MORE
Indonesia has its own priorities. February 2023: "Nickel shows Indonesia how to escape the middle income trap" and if they think crushing competition is necessary they just might do it.
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