Morowali Industrial Park, Indonesia's largest nickel hub, said it could cut
output 30-40% if new water sources are not found after an El Nifio-driven
drought constrained smelters' water supply, media relations head Dedy Kurniawan
said. Park management is seeking nearby water sources and implementing
mitigation measures to limit production impacts. Indonesia supplies over half of
global nickel output, much of it processed in two large industrial parks;
potential reductions at Morowali could help stem a roughly 17% fall in LME
nickel since early May.
