Nickel mining activities at Vale Indonesia have been suspended because its annual work plan failed to receive official approval. The company, a joint venture between the base metals unit of Brazil's Vale SA and the Indonesian government, stated in an announcement that although operations are currently paused, official approval is expected soon, and this delay is not anticipated to impact the overall sustainability of operations. Delays in the approval of mining quotas are not uncommon, but traders are closely monitoring the nickel supply outlook. Driven by expectations of tightening market supply, nickel prices surged significantly in December. Nickel futures on the London Metal Exchange rose 1% to $16,855 per ton. The metal's price soared over 12% for the month, marking its largest monthly gain since April 2024. Vale Indonesia is one of the country's largest nickel mining companies and is currently investing heavily in the construction of high-pressure acid leaching (HPAL) plants. The nickel products from these plants can be used in the electric vehicle sector. Indonesia's HPAL plant capacity is set for significant expansion this year, with the number of plants increasing from the current six to at least 14.
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