Nickel price gains after Indonesia seizes part of giant mine

Image: Tsingshan Holding Group.

Nickel rose after Indonesia seized part of a giant mine semi-owned by top Chinese producer Tsingshan Holding Group Co., underlining risks to ore output in the world’s largest supplier.

A government task force on Thursday took control of about 148 hectares of the operation owned by PT Weda Bay Nickel — the world’s largest mine for the battery metal — over an alleged permit violation. France’s Eramet SA, one of the company’s shareholders, has said it sees no impact on operations at this stage.

Still, the seizure highlights ongoing challenges to reliable supply from Indonesia, which accounts for well over half of global nickel output. President Prabowo Subianto, who has outlined bold and costly plans for the nation, has also promised a crackdown on illegal mining, which may disrupt the flows of ore to local processors.

Smelters in Indonesia have been dealing with a tight ore market all of this year, due to high rainfall and low issuance of government mining quotas. At the same time, LME nickel prices have spent months range-trading at low levels, held back by disappointing demand from the electric vehicle battery sector.

Nickel futures advanced 1.6% to settle at $15,391 a ton on the LME. Copper added 0.2% and aluminum rose 0.6%.

(By Eddie Spence)

Comments

Your email address will not be published. Required fields are marked *

  • {{ commodity.name }}

    Contest Ranking Modal BG Contest Ranking Modal BG
    Contest Ranking Title

    The new Mining Power Rankings are live. Vote for the sector’s leaders in each of the Large-, Small-, and Micro-Cap leagues.

    Vote Now