Indonesia's nickel boom may exhaust reserves in ten years, experts warn
Industry leaders say Indonesia's rapid expansion of nickel smelting could deplete its ore reserves within a decade, urging a shift from price support to reserve-preserving policies.
Indonesia's nickel processing surge is outpacing the country's known ore deposits, prompting warnings that the resource could be exhausted within ten years. Irwandy Arif, president commissioner of state-owned PT Aneka Tambang, said the surge in smelter capacity will inevitably speed up reserve depletion, estimating that existing saprolite could sustain production for just six years and limonite for about sixteen. Meanwhile, Andry Satrio Nugroho of the Institute for Development of Economics and Finance argued that recent cuts to mining companies' annual production plans, intended to lift global nickel prices, fail to address the need to preserve the ore base.
He highlighted that smelters now require 310-400 million tonnes of ore, yet the Philippines supplies only roughly 23 million tonnes. The consequences are already felt, as Weda Bay Nickel halted production in late May and reduced its workforce. Analysts stress that Indonesia must move beyond price support and adopt measures that safeguard the longevity of its nickel reserves.
Why it matters
Nickel is critical for electric-vehicle batteries, so Indonesia's reserve risk could affect global supply and prices.
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