Indonesia’s nickel miners association said the government will selectively
approve additional 2026 nickel ore production quotas only for smelters with low
raw-material inventories, as markets await clarity on this year’s quota
adjustments. The association expects overall 2026 quotas to be held at about
260–270 mln tonnes versus 379 mln tonnes in 2025. Domestic nickel ore
consumption from Jan–Jul reached 142.96 mln tonnes, roughly 53–55% of the annual
quota. The group recommended permitting an extra 30 mln tonnes this year as a
strategic buffer to lift supply toward ~300 mln tonnes and meet smelter capacity
expected to start in 2026; Indonesia’s ~80 smelters would consume about 315 mln
tonnes a year at full load. The association urged greater transparency in
quota-setting, warning that opaque revisions prompt market overreactions —
citing early-August LME price volatility. The Energy and Mineral Resources
Ministry did not immediately specify volumes, reiterating policy aims to
safeguard resource sustainability and support prices.
