Jakarta - Meidy Katrin Lengkey, Secretary general of the Indonesian Nickel Miners Association (Sekum APNI), has revealed that the fall in world nickel prices in 2023-2024 is due to an oversupply of nickel in Indonesia, which has led to the temporary closure of several mines abroad.
Speaking at a morning talk on the theme "Opportunities and Challenges for the nickel industry in 2024" at MetroTV in the business district, he said that the current nickel price continues to fall from 2023 to the beginning of 2024, even free fall, and has touched the lowest level since 2024.
"One of the reasons for the fall in nickel prices is the oversupply of nickel in Indonesia, and even several Australian producers have temporarily closed mines due to the prolonged decline in nickel prices," Meidy, her nickname, said on Wednesday.
He said the decline in nickel prices between April 2023 and January 24, 2024, continued further down rather than up, and mining entrepreneurs hope that nickel prices in the future will be the same as last year at $20,000 or $2,000 per tonne. $80,000 per ton.
"But it is a fact, from last year until today, nickel prices have reached $16,000 per ton. "This has had a significant impact on the effective capacity and efficiency of nickel production in Indonesia," he said.
"If nickel prices continue to fall further, of course all entrepreneurs, not just in Indonesia, all entrepreneurs in the world, nickel-producing countries will feel the same impact as Indonesia is feeling at the moment," he continued.
He said that if the current nickel price is to provide a sense of security for enterprises to conduct business and enable them to continue to operate, it must take into account production costs and other determinants such as the obligations of enterprises to the state and society. And the environment.
"If we talk about nickel, our safety factor is actually $18,000 to $20,000 per ton. By this calculation, the profit margin is probably around 20% to 30%. "Even with prices of $18,000 and $16,000 per ton, we will still be able to survive," he said.
He also explained that the oversupply in Indonesia is due to the large number of smelters and high production based on existing demand for nickel's downstream success. This makes the Indonesian nation very proud because it has successfully downstream nickel in the downstream industry. Even by the end of 2023, many nickel processing plants will be up and running.
"There are 81 companies making it. Don't look at the size, but look at the 81 companies that process 247 production line furnaces. If we calculate the factors, we care about reserves, and again, reserves, and Indonesia is number one (with the largest nickel reserves in the world). "But if the nickel continues to be eaten, it no longer reproduces, and the nickel will run out whether you like it or not," he explained.
Medi explained that this is worrying, especially as more and more new factories are being built. With such a large nickel downstream, there is a need to focus on other aspects, such as the environment, i.e. environmental, social and governance (ESG) and occupational health and safety (K3).
"On top of that, there have been a number of accidents at several processing plants recently. That's the goal, the environment and the accident. "This is a very important focus for the Indonesian government," he concluded.
