London, April 23rd (Argus) - French nickel producer Eramet stated that its PT Weda Bay Nickel (PT WBN) nickel mine in Indonesia is preparing to enter a "shutdown and maintenance" state in May. This is because the company has only received a preliminary nickel mining quota (RKAB) of 12 million wet tons for 2026.
Eramet has applied for an increase and revision of this initial quota. The company claims that with the current license, the allowable production will be exhausted by the middle of next month, so the quota issue has become the most critical development factor for its nickel business in the near future.
PT WBN's 2026 initial RKAB of 12 million wet tons of nickel ore production and sales license includes 3 million wet tons for internal consumption. This license level is over 70% lower than the 2025 quota.
Although PT WBN will enter a shutdown and maintenance state next month, Eramet's nickel pig iron (NPI) factory will still operate with inventory nickel ore.
The company stated that in the context of limited mining licenses in Indonesia and the increase in sulfur supply costs pushing up the cost of the HPAL project, the nickel market is expected to gradually rebalance in the remainder of this year. The production cost of PT WBN is expected to be higher than that in 2025, due to the approved production limit, mining plan adjustments, and rising fuel costs.
Eramet also stated that the revised mineral product benchmark pricing formula in Indonesia may also reshape the economic value of the ore. The new formula has come into effect in mid-April and now includes the value of cobalt and other associated metals in the pricing system.
