Indonesia's mineral resources management strategy is now a major shift.

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Indonesia's state-owned mining enterprises called for control of nickel smelting capacity expansion, balance market supply and demand and sustainable use of resources, to deal with the challenges of international policy changes and reserve restrictions.

Faced with the risk of supply and demand dysfunction in the global nickel items market, Indonesia'state-owned mining giant MIND ID recently proposed an manufacturing structure optimization plan. Enterprise executives pointed out that the explosive development of domestic nickel smelting capacity has led to pressure on product prices, and the market price of some nickel-iron items has even fallen below the production cost line, and it's urgent to take restrictive measures on new secondary smelting facilities to prevent the global market from falling into a crisis of oversupply. behind this strategic adjustment is the Indonesian government's prolonged plan to the sustainable consumption of mineral resources. According to geological exploration data, the existing nickel ore reserves is able to only maintain the mining demand to the next 12-15 years. Makes sense, right?. The authorities especially emphasize the need to concentrate resources to ensure the smooth progress of approved smelting projects and prevent harm to the huge investment in the early stage caused by sudden policy changes. As a supporting measure, the amendment to the Mineral Law promulgated in 2009 needs mining companies to establish a downstream processing system, and the ore export ban implemented in 2014 has strengthened this manufacturing chain integration direction. market analysts believe that Indonesia's capacity manage measures are essentially facing double pressure: not only to maintain the market position of the world's largest nickel producer, however also to cope with the changes in the demand structure brought about by the new energy transformation. At present, the continuous expansion of nickel pig iron and stainless steel production capacity has made Indonesia an crucial weather vane to global nickel product prices, and its manufacturing policy adjustment is bound to trigger a chain interaction in the international market. it's worth noting that this strategic adjustment not only protects existing investments, however also reserves room to the research of emerging technologies. By restricting the repeated construction of low value-added items, Indonesia expects to guide the flow of capital to high value-added fields such as high-purity nickel salt and battery materials, which is in line with the global new energy sector's demand to nickel resources.

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