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2026-09-16 11:26:08
[Indonesia Cuts Base Price for Low-Grade Nickel Ore, Alleviating Cost Pressure on HPAL Plants] (1) Indonesia has significantly reduced its base price for low-grade nickel ore, providing relief to local processors burdened by cost pressures from the Iraq War. (2) Under a newly enacted ministerial regulation, the formula for calculating the mineral base price (HPM) has been revised to lower the minimum payable price for low-grade ore. Calculations show that the cost of 1.2% nickel ore is almost halved at the new level. (3) This change will benefit high-pressure acid leaching (HPAL) plants that process low-grade nickel ore into chemicals used in the electric vehicle battery industry. (4) HPAL plants are already overwhelmed by soaring sulfur prices, a key reagent, due to the Middle East war, forcing some to consider joint production cuts. (5) A large amount of new HPAL capacity will come online this year and next, potentially putting further pressure on nickel prices, which fell to their lowest level this year on Wednesday. (6) The products produced by these plants, known as mixed hydroxide precipitates, can also be converted into pure nickel metal that can be stored in London Metal Exchange warehouses.
