Weda Bay Nickel halts ore production after mining quota runs out
2026-06-05 11:33:11 [Print]
The Indonesian unit of Eramet has suspended nickel ore production after a government decision to slash its 2026 mining quota by 70% compared to last year left it unable to continue operations, the company's chief executive said on Thursday.
Weda Bay Nickel - Eramet's nickel mining joint venture in Indonesia with China's Tsingshan Group and state-owned miner Antam - received an initial production allowance of 12 million wet metric tons for this year, down sharply from the 42 million tons it produced in 2025. The reduction is part of the government's efforts to better control supplies and support prices.
"The mining quota has been exhausted, so now we are in discussion with the mining ministry to get an extension of our permit," Eramet Indonesia's chief executive Jerome Baudelet told reporters on the sidelines of an industry conference.
Production has been suspended since late May, and the company has reduced its workforce and entered a maintenance phase.
Baudelet said revisions to mining quotas, also known as RKAB, are typically made before the end of July.
The 42 million tons of nickel ore supplied by Weda Bay Nickel last year accounted for about one-third of the 120 million tons processed at the Indonesia Weda Bay Industrial Park, one of the country's major nickel hubs.
Weda Bay Nickel - Eramet's nickel mining joint venture in Indonesia with China's Tsingshan Group and state-owned miner Antam - received an initial production allowance of 12 million wet metric tons for this year, down sharply from the 42 million tons it produced in 2025. The reduction is part of the government's efforts to better control supplies and support prices.
"The mining quota has been exhausted, so now we are in discussion with the mining ministry to get an extension of our permit," Eramet Indonesia's chief executive Jerome Baudelet told reporters on the sidelines of an industry conference.
Production has been suspended since late May, and the company has reduced its workforce and entered a maintenance phase.
Baudelet said revisions to mining quotas, also known as RKAB, are typically made before the end of July.
The 42 million tons of nickel ore supplied by Weda Bay Nickel last year accounted for about one-third of the 120 million tons processed at the Indonesia Weda Bay Industrial Park, one of the country's major nickel hubs.
Nickel Ore Philippine 1.3%min CIF China
Unit:USD/mt
China refined nickel producers' suspension number statistics by province by month
Unit: pcs
