A Sydney‑listed nickel company said drought linked to El Nifio has forced it to
suspend a ramp‑up at its Excelsior nickel‑cobalt plant in Sulawesi, which will
run at about 30% of nameplate capacity while water restrictions persist. The
firm said its other plants were not affected. Indonesia — roughly 60% of global
nickel supply — is in severe drought, raising the risk of tighter global nickel
markets. Earlier this month Morowali Industrial Park (IMIP), where much of the
company’s operations sit, warned that without new water sources overall output
at the park could fall 30–40%. IMIP producers are also facing higher sulfur
costs; sulfur is a key reagent for HPAL plants such as Excelsior.
