ASIATODAY.ID, JAKARTA – Indonesia is projected to dominate world nickel production in the next 10 years. This was conveyed by the CEO of Eramet Indonesia, Jerome Baudelet in Jakarta, Tuesday, November 5 2024.
“If we look further, I think it is possible that in the next 10 years Indonesia will control 70 percent of world nickel production,” said CEO of Eramet Indonesia, Jerome Baudelet in Jakarta, Tuesday, November 5 2024.
According to Jerome, this is extraordinary because of the abundant nickel resources in Indonesia. Apart from that, Indonesian nickel also has good quality. In 2023, Indonesia will control more than half of the world’s nickel commodity supply, compared to previously in 2013.
Eramet, a French mining and metallurgical company, has invested in Indonesia to process nickel sustainably. Eramet itself aims to become one of the key players in the electric vehicle (EV) industry in Indonesia.
Eramet is partnering with the Geological Agency of the Indonesian Ministry of Energy and Mineral Resources and has signed a cooperation agreement to strengthen the EV ecosystem in Indonesia. A joint study is underway to assess nickel and lithium commodities, with special equipment to conduct lithium exploration in Grobogan, Central Java. Eramet also formed a consortium with Indonesian and international partners to develop EV batteries in Indonesia.
Eramet previously projected demand for primary nickel to grow 5 percent year-on-year (YoY) in 2024. This is driven by increasing demand from the stainless steel and electric vehicle battery sectors, which are expected to continue to increase in the next few years.
In addition, Indonesia, as one of the world’s major nickel producers, continues to demonstrate the ability to expand new nickel production capacity quickly and efficiently. This strengthens Indonesia’s position in the global supply chain and makes a significant contribution to nickel market dynamics.
Next year, the global nickel market is predicted to experience an even larger surplus, driven by continued production expansion in Indonesia.
Owner of the Largest Nickel and Bauxite
Reserves Indonesia is recorded as having the three largest natural resources in the world, namely tin, nickel and bauxite.
The USGS (United States Geological Survey) and the Geological Agency of the Ministry of Energy and Mineral Resources recorded that Indonesian nickel is the second largest in the world, while bauxite is the fourth largest in the world.
According to the Head of the Geological Agency of the Indonesian Ministry of Energy and Mineral Resources, Muhammad Wafid, the large content of these two commodities makes Indonesia an important player in the world.
“As a country that has large reserves of natural resources, Indonesia should be an important player. This means that Indonesia has an important role in providing raw materials, supply materials, and also world demand for nickel and bauxite,” said Wafid.
Wafid explained that in 2023, Indonesia’s nickel resources in the form of ore amounted to 18,550,358,128 tons with total reserves of 5,325,790,841 tons of ore.
Meanwhile, for bauxite itself, the total resources owned in the form of ore are 7,475,842,602 tonnes with total reserves in the form of ore amounting to 2,777,981,035 tonnes. To maximize state income from these mineral products, Indonesia has gradually implemented a ban on exports of raw materials over the last few years.
This policy aims to encourage the downstreaming of domestic industry, increase the added value of products, and reduce dependence on exports of raw materials.
“Based on the latest data, currently there are 147 smelters. If divided into two processing methods or processing processes, pyrometallurgical there are 49 operating smelters, 35 construction smelters, and 36 smelters in planning. Meanwhile in the second, hydrometallurgical method, there are 5 operational plans, then “3 construction plans and 19 planning plans,” explained Wafid.
The downstream program itself has become a priority for the Prabowo Subianto government to increase economic growth through processing natural resources in the country.
“Downstreaming will be carried out for all the commodities we have. The added value of all these commodities must increase our economic strength so that our people can achieve a prosperous level of living. All our commodities must be able to be enjoyed by all Indonesian people,” said Prabowo.
Continuous exploitation of nickel and bauxite products will certainly reduce the amount of existing reserves. For this reason, the Geological Agency continues to identify and inventory green fields and areas that can be explored for resources and reserves.
“Over the 5 years, namely 2019-2023, the condition of inferred resources is the same as measured resources, which has improved quite significantly,” concluded Wafid. (AT Network)
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