Indonesia Nickel Mining Market Analysis including Reserves, Production, Production Forecasts, Operating, Developing and Exploration Assets, Key Players and the Fiscal Regime including Taxes and Royalties, 2020-2025
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Indonesia is a dominant player in the global nickel mining industry and has an abundance of both nickel and other minerals such as copper, bauxite, iron ore, coal, and gold. As of January 2021, the country had 21 million tonnes (Mt) of nickel reserves. With this, the country stood as the largest in terms of nickel reserves globally. The production in Indonesian nickel mining is expected to grow by a compound annual growth rate (CAGR) of more than 2%.
The market growth has been enabled by the commencement of new projects over the period, including the Aquila Nickel, PT Tekonindo mine and East Halmahera FeNi projects. The government is encouraging the development of projects with high-pressure acid leaching (HPAL) technology to extract nickel and bauxite from laterite ore bodies, and these developments are expected to support the growth in mine output. Despite the COVID-19 pandemic, global nickel production has grown in 2020 mainly due to the contribution of the major producers and importers.
Indonesia nickel mining market overview
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What are the Indonesian nickel mining market dynamics?
The Indonesian government is found encouraging the development of projects with high-pressure acid leaching (HPAL) technology to extract nickel and bauxite from laterite ore bodies, and these developments are expected to support the growth in mine output. Amongst various developments, in March 2021, Silkroad Nickel Ltd entered into a $90mn new offtake agreement with PT Ekasa Yad Resources, to supply an aggregate of more than 2Mt of high-grade nickel ore starting from March 2021 to December 2022.
Indonesia’s ban on nickel ore exports, coupled with the outbreak of the COVID-19 pandemic, majorly affected nickel production in 2020. In January 2020, the Indonesian Government amended nickel ore export regulations to boost the expansion of the domestic smelting industry and advanced the ban on nickel ore exports, which was otherwise scheduled from 2022.
The ban affected the nickel miners without integrated nickel pig iron (NPI) operations, as they have to sell their ore to domestic smelters at a low price. In April 2020, the Indonesian Nickel Miners Association (APNI) appealed to the government to end the export ban, in order to lessen the impact of the COVID-19 pandemic on processed nickel exports, but this was rejected by the Ministry for Maritime Affairs and Investment.
What is the categorization of Indonesian nickel mining assets?
The nickel mines are categorized into active mines, development projects and exploration projects, further categorized according to their mining stages along with additional information as total resources, equity owners etc. The market is also categorized into applications of nickel in the automobile industry, construction industry, and others.
The pandemic had a significant impact over major automobile producing countries, including the Northern American region, Japan, Western European countries, and India. This also resulted in the drop of demand for nickel which recovered by Q1 2021. Indonesia remained the biggest consumer for nickel for both automobile and construction industries.
Who are the major players in the Indonesian nickel mining market?
PT Indonesia Asahan Aluminium (Persero) and PT Vale Indonesia Tbk (PT Vale) are the two largest nickel producers in Indonesia.
The PT Indonesia Asahan Aluminium (Persero) or INALUM, is a sole producer of aluminum ingots in Indonesia. The company operates nickel, gold, and bauxite mining in Indonesia through its 65% owned ANTAM, which is an export-oriented, diversified metals and mining company. It is involved in almost all activities across the mining supply chain, starting from exploration, development, mining, and processing to the marketing of nickel ore, ferronickel, gold, silver, bauxite, and coal.
Indonesia nickel mining market, by key companies
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Market report scope
|Market Volume (Year – 2020)
|CAGR of >2% from 2021 to 2025
|Base year for estimation
|Active mines, Development projects, Exploration Projects
|PT Indonesia Asahan Aluminium (Persero) and PT Vale Indonesia Tbk (PT Vale)
The report also provides detailed information on reserves, production, production by company and country, major active, exploration and development projects by region.
Reasons to Buy
- Comprehensive evaluation of the impact of the COVID-19 on global Nickel mining
- To understand historical and forecast trend on Indonesia Nickel production
- To know the trend of Nickel production company
- To gain an understanding on aluminum prices
- To track latest company developments
- To understand about major active, development and exploration Nickel projects by region
- To understand about the demand from the automobile and construction industries
PT Vale Indonesia Tbk (PT Vale)
Table of Contents
1 Executive Summary
2 Reserves, Production and Prices
2.1 Nickel Reserves by Country
2.2 Nickel Production
2.3 Nickel Prices
3 Nickel Assets
3.1 Active Mines
3.1 Development Projects
3.2 Exploration Projects
4 Nickel Exports
5.1 Indonesia NPI Production
5.2 Indonesia Stainless-Steel Industry
5.3 Demand from Electric Vehicles
6 Major Nickel Producers
6.1 PT Indonesia Asahan Aluminium (Persero)
6.2 PT Vale Indonesia Tbk (PT Vale)
7 Fiscal regime
7.1 Governing Bodies
7.2 Laws and Regulations
– Law on Mineral and Coal Mining No. 3 of 2020
7.3 Rights and Obligations
7.4 Mineral Licenses and Mining Areas
– Mining Licenses
– Mining Areas
7.5 Taxes and Royalties
– Corporate Income Tax (CIT)
– Mining Tax
– Withholding Tax
– Luxury-Goods Sales Tax (LGST)
– Tax Loss
– Value-Added Tax (VAT)
8.4 Secondary Research
8.5 Development Likelihood
Table 1: Indonesia Nickel Mining – Nickel Reserves by Country (Million Tonnes), January 2021
Table 2: Indonesia Nickel Mining – Active Mines in Indonesia by Total Ore Reserves (Million Tonnes)
Table 3: Indonesia Nickel Mining – Historical and Forecast Nickel Mine Production (Thousand Tonnes), 2005–2025
Table 4: Indonesia Nickel Mining – World Nickel Prices, Quarterly (US$/Tonne), 2014–2021
Table 5: Indonesia Nickel Mining – Active Mines, 2021
Table 6: Indonesia Nickel Mining – Development Projects, 2021
Table 7: Indonesia Nickel Mining – Exploration Projects, 2021
Table 8: Indonesia Nickel Mining – Nickel Exports (Thousand Tonnes), 2005–2025
Table 9: Indonesia Nickel Mining – Major Nickel Smelters and Input Capacity (Million Tonnes), 2021
Table 10: Indonesia Nickel Mining – PT Indonesia Asahan Aluminium (Persero), Major Projects, 2021
Table 11: Indonesia Nickel Mining – PT Vale Indonesia Tbk (PT Vale), Major Projects, 2021
Table 12: Indonesia’s Mining Fiscal Regime – Mining Governing Bodies and Agencies, 2021
Table 13: Indonesia’s Mining Fiscal Regime – Mineral License, 2021
Table 14: Indonesia’s Mining Fiscal Regime – Mining Areas, 2021
Table 15: Indonesia’s Mining Fiscal Regime – Fixed Fees by Mining License, 2021
Table 16: Indonesia’s Mining Fiscal Regime – Royalty Rates by Selected Commodities, 2021
Table 17: Indonesia’s Mining Fiscal Regime – Coal Royalty Rates by Quality and Mining Method, 2021
Table 18: Indonesia’s Mining Fiscal Regime – Depreciation Rates (%), 2021
Table 19: Indonesia’s Mining Fiscal Regime – Withholding Tax Rate (%), 2021
Table 20: Likelihood: High
Table 21: Likelihood: Medium
Table 22: Likelihood: Low
Figure 1: Indonesia Nickel Mining – Nickel Reserves by Country (Million Tonnes), 2017–2021
Figure 2: Indonesia Nickel Mining – Nickel Reserves by Country (%), January 2021
Figure 3: Indonesia Nickel Mining – Historical and Forecast Nickel Mine Production (Thousand Tonnes), 2005–2025
Figure 4: Indonesia Nickel Mining – World Nickel Prices, Quarterly (US$/Tonne), 2014–2021
Figure 5: Indonesia Nickel Mining – Nickel Exports (Thousand Tonnes), 2005–2025
Figure 6: Indonesia Nickel Mining – Global Nickel Demand by End Use (%), 2020
Frequently asked questions
What is the Indonesia nickel mining market volume in 2021?
The Indonesia nickel mining market volume was estimated at 21Mt in 2021.
What is the nickel mining market growth rate?
The Indonesia nickel mining market is expected to grow at a compound annual growth rate of more than 2% from 2022 to 2025.
What are the major asset categories in Indonesia nickel mining market?
The nickel mines are categorized into active mines, development projects and exploration projects.
Who are the key players in global nickel mining market?
PT Indonesia Asahan Aluminium (Persero) and PT Vale Indonesia Tbk (PT Vale) are the two largest nickel producers in Indonesia.
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