The Ministry of Energy and Mineral Resources emphasized that the class II nickel smelter moratorium policy aims to encourage increased added value.

Secretary General of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, said that the government is committed to encouraging returns on investment in the mining sector, especially nickel, to run well.

"We don't want to prohibit it but ensure that the business is sustainable," said Dadan when met at the Ministry of Energy and Mineral Resources on Sunday (15/10).

Dadan added, according to President Joko Widodo's direction, the government expects the downstreaming of smelters to continue. Thus, an increase in added value can be created.

According to Dadan, the smelter moratorium policy will not have an impact on nickel mining investment. Moreover, the government has mapped out plans for future nickel downstreaming.

"So now the movement is after the smelter, what is the next derivative? We already have a mapping that this technology already exists, it can be developed in Indonesia," continued Dadan.

Previously, the Indonesian government has now begun to limit permits for constructing class II nickel smelter projects that produce Nickel Pig Iron (NPI) and Ferronickel (FeNi).

Deputy for Investment and Mining Coordination at the Coordinating Ministry for Maritime Affairs and Investment, Septian Hario Seto, said that the move to limit the construction of class II nickel smelters aims to maintain nickel supply levels.

"Because if there is an oversupply it will definitely cause prices to fall. This is what we are also avoiding," said Seto at Kompas Tower, last September.

Seto explained that the government had decided not to add new projects. Meanwhile, projects that have previously obtained permits are still allowed to continue construction.

According to him, smelter business players have now also stopped new investments in smelter projects that produce NPI and FeNi products.

"We also haven't issued any new permits, as far as I know. So those who are building now are those who have obtained previous permits," explained Seto.

Image source: ANTARA FOTO/JOJON

Source: www.industri.kontan.co.id/Kementerian ESDM Sebut Moratorium Smelter Nikel Untuk Dorong Nilai Tambah