Indonesia plans to build 31 nickel smelters by 2022

The Indonesian Government aims to build 31 nickel smelters by 2020. (Source: TheInsiderStories)

The Indonesian Government aims to build 31 nickel smelters by 2022, with 20 projected to open next year to help the production of electric car components.

With many smelters going into operation, there was no concern about the supply of electric car components, head of the mineral exploration business at the Indonesian Ministry of Energy and Mineral Resources (MEMR) Andri Budhiman said at a recent seminar.

MEMR Regulation No. 4/2009 prescribes that mining companies are required to process and refine raw materials to raise added values. Then, the minimum processing and refining limits for metal minerals, non-metals and rocks have been regulated by the MEMR Regulations No. 5/2017 and No.25/2018, Budhiman said.

He explained that Indonesia’s proven nickel reserves of 698 million tonnes could only guarantee the supply for refining facilities for 7.3 years. Meanwhile, the country’s estimated nickel reserves stand at 2.8 billion tonnes.

Therefore, Indonesia will step up the exploration work to ensure the supply for 42 years, as from 2022.

In early September, the country has announced the restriction of low-grade nickel ore exports.

According to a Government study, 40 percent of the total cost of manufacturing electric cars is from batteries. Meanwhile, Indonesia is one of the countries that has the best raw materials in the world for producing lithium-ion batteries, namely low-grade nickel ore and high cobalt./.

VNA