Singapore, January 29th (Argus) - Australian producer Nickel Industries, which focuses on the Indonesian market, stated that its nickel production declined during the period from October to December 2025 due to the suspension of its mining operations caused by the delay in the approval of the RKAB mining quotas.
The company's latest quarterly report shows that the total nickel ore production in the fourth quarter of 2025 decreased by 77% compared to the same period of the previous year, at 167 million wet tons, mainly due to the delay in the RKAB approval. The production of humic soil ore decreased by 73% compared to the same period of the previous year, at 445,902 million wet tons, while the production of brown iron ore decreased by 78% during the same period, at 122 million wet tons. The total sales volume of nickel ore also decreased by 66% to 945,631 million wet tons.
After the RKAB quota was approved on December 12th, the company resumed the operation of the Hengjaya (Hengjaya) mine, and it is expected that the nickel ore sales volume of this mine will recover to more than 1.4 million wet tons in January.
During the period from October to December, Nickel Industries produced 269,528 tons of NPI, a year-on-year decrease of 1.5%, but a 2.3% increase compared to the previous month. The nickel content of NPI dropped to 11.7%, while in the fourth quarter of 2025 it was 12%.
The wet process project of Huayu Nickel Cobalt (HNC) produced 21,441 tons of nickel MHP in the fourth quarter, a 2.1% increase compared to the same period of the previous year, while its cobalt production increased by 15% to 2,301 tons during the same period. Due to the rising cobalt prices caused by the ongoing supply shortage, cobalt extraction was prioritized this quarter.
The company reported that the Morning Star (ENC) wet process project is expected to come online in the first quarter of this year. The design capacity of ENC is 72,000 tons of nickel. The Sampala nickel mine project is expected to receive RKAB approval in March.
Nickel Industries holds 80% equity in each RKEF project, 10% equity in the Huayu Nickel Cobalt (HNC) project, 44% equity in the Morning Star (ENC) project, 60% equity in the Sampala project. The company also holds 80% equity in the Hengjaya mine.
