Indonesia Halts 25 Nickel Mines in Southeast Sulawesi Amid Reclamation Issues

Indonesia Halts 25 Nickel Mines Over Reclamation Failures

The Indonesian Ministry of Energy & Mineral Resources (ESDM) suspended 25 nickel mining companies in Southeast Sulawesi due to a lack of reclamation and post-mining guarantees. This action forms part of a broader crackdown affecting 190 mining licenses across regions from Central Kalimantan to North Maluku. The suspensions include a temporary halt of up to 60 days for mining activities, while companies must maintain environmental management and monitoring. The sanctions follow repeated warnings issued between December 2024 and August 2025, which companies failed to address.

Impact on Nickel Supply and Market Response

Although the suspension affects numerous nickel mines, market experts suggest the immediate impact on global nickel supply could be limited, as some mines were inactive or operating with unstable production rates. However, increased regulatory enforcement raises concerns about future nickel ore availability from Indonesia. The government’s recent seizure of land from key miners for lacking forestry permits further amplifies supply risk fears. Following these developments, Class 1 nickel prices on the London Metal Exchange showed volatility, with official prices rising 3% on September 15.

SuperMetalPrice Commentary:

Indonesia’s intensified regulation signals a firm stance on sustainable mining practices. While short-term supply disruptions may be contained, ongoing enforcement could tighten nickel availability long-term. Market participants should watch for further government actions and potential shifts in nickel pricing dynamics. Companies adhering to reclamation and environmental standards may gain competitive advantages in this evolving landscape.