New Factories Will Be Restricted Or RI Nickel Could Die! News – 1 hour ago

Jakarta, CNBC Indonesia – The Ministry of Energy and Mineral Resources (ESDM) plans to limit or even suspend (moratorium) the construction of new nickel refining and processing facilities (smelters).

Minister of Energy and Mineral Resources Arifin Tasrif said that the government would put a moratorium on second-class nickel smelters, especially those using the pyrometallurgical process, which will produce ferronickel (FeNi) and Nickel Pig Iron (NPI) products.

Arifin said that currently his party is communicating and coordinating with the Ministry of Industry to limit the construction of new nickel smelters in the country.

“We are communicating and coordinating with the Ministry of Industry, because most of the permits issued from, permits that are not integrated, are there (Ministry of Industry). If not (nickel smelter moratorium), we will run out of nickel,” said Arifin when met at the office. Ministry of Energy and Mineral Resources, Jakarta, quoted Monday (23/10/2023).

Arifin said that Indonesia’s nickel reserves are in danger of running out if nickel ore, especially high grade nickel ore (saprolite), continues to be used massively.

In this way, currently the party is starting to evaluate the construction of a new nickel smelter. He also believes that Indonesia must produce greater value-added nickel products, one of which is by processing nickel ore to cathode precursor products as a battery component.

“Meanwhile, the domestic downstream industry to accommodate processing that has added value must be attracted a lot. It’s already starting to exist, hopefully to make precursors,” he added.

Arifin also assessed that Indonesia’s abundant nickel mineral resources should be the main capital to be able to carry out further downstream processes.

“That is our main capital. We have to use the main capital that is given minerals which can help clean energy electrification,” he said.

Previously, the Special Staff of the Minister of Energy and Mineral Resources for the Acceleration of Mineral and Coal Governance, Irwandy Arif, said that in the future permits for the construction of class 2 pyrometallurgical type nickel smelters would no longer be granted to carry out the class 2 nickel smelter moratorium plan.

“The Ministry of Energy and Mineral Resources already has plans to implement restrictions. Then the Coordinating Ministry for Maritime Affairs and Fisheries, Deputy for Investment and Mining Coordination, said that the government will no longer issue permits for the construction of smelters of the type for the pyrometallurgical process for class 2 nickel,” explained Irwandy to CNBC Indonesia in Minig Zone program, quoted Thursday (19/10/2023).

Based on this plan, the government has also comprehensively studied that the demand for the production of second class nickel products, especially for the pyrometallurgical type in Indonesia, is increasingly massive with the increasingly mushrooming construction of smelters.

Irwandy said, for nickel through the pyrometallurgical process in Indonesia or which processes high grade nickel there are 44 smelters, while for nickel through the hydrometallurgical process which processes low grade nickel there are 3 smelters.

“So the consumption of nickel ore for pyrometallurgy which consumes high grade nickel ore, namely saprolite, is 210 million tons per year. And for hydrometallurgy towards batteries, it requires low grade nickel ore, namely limonite, amounting to 23.5 million tons per year ,” he explained.

Irwandy said that currently there is still a nickel smelter under construction. He said that for the pyrometallurgical process there are 25 smelters being built and for nickel smelters using the hydrometallurgical process there are 6 smelters being built.

“There are 25 smelters under construction with ore consumption of 78 million tonnes per year. And towards the hydrometallurgical battery process there are 6 smelters under construction with ore requirements of 34 million tonnes per year,” he added.

It doesn’t stop there, Irwandy said that the construction of class two pyrometallurgical nickel smelters is becoming more massive with plans to build 28 new smelters and 10 smelters with a hydrometallurgical process are currently in the planning stage.

“Respective needs are 130 million tons per year (pyrometallurgy) and 54 million tons per year (hydrometallurgy),” he concluded.

In this way, Irwandy said that if you total up all the smelters that are already operating, during construction and planning, then smelters using the pyrometallurgical process in Indonesia will reach 97 smelters, and for hydrometallurgical smelters there will be 19 smelters.

“The total number of smelters available to date, not to mention the newest ones, is 116 smelters,” he said.

[Gambas:Video CNBC]

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