Indonesia’s Nickel Production Growth Faces Supply and Environmental Hurdles

HPAL

Nickel Production Growth in Indonesia Challenged by Acid and Waste Concerns

Indonesia aims to expand its nickel production through enhanced HPAL (high-pressure acid leaching) technology, but faces major setbacks. A shortage of sulphuric acid and tailings disposal issues threaten the viability of this rapid growth. Despite these hurdles, output is still forecasted to rise, although the global market may shift toward a surplus.

Sulphuric Acid Supply Limits HPAL Scalability

HPAL requires vast amounts of sulphuric acid to produce mixed hydroxide precipitate (MHP), which contains nickel and cobalt. In 2024, Indonesia expects to produce 325,000 to 345,000 tons of MHP, up from 269,000 tons in 2023. According to Deputy Minister Septian Hario Seto, this figure could rise to 800,000–900,000 tons by 2026 if supply issues are addressed.

Nickel Ore Strain and Acid Import Dependency

Rising MHP output has increased demand for limonite ore and sulphuric acid, most of which is imported from China and South Korea. To reduce costs, some producers are evaluating alternative acid sources. New smelters in Indonesia are expected to add 3 million tons of acid capacity by 2025, which may partially resolve the shortage.

ESG Scrutiny Highlights Tailings Disposal Challenges

Environmental and ESG standards are adding pressure to tailings management. The HPAL process produces 1.4–1.6 tons of tailings per ton of nickel, requiring advanced disposal solutions. While dry stacking is seen as a sustainable method, Indonesia’s wet climate and seismic risks complicate its implementation.

Ensuring Sustainable Growth in Nickel Production

Indonesia must balance its nickel production growth with sustainable practices. This includes building domestic acid capacity and improving tailings infrastructure. Failure to address these environmental and logistical issues could undermine long-term industry development.

Leave a Reply

Visitors

today : 6

total : 45314

Ti Gr.23(Ti-Al-V)

Ti Gr.23(Ti-Al-V)

1. Introduce – High…
Ti Gr.19(Ti-Al-V-Cr-Mo-Zr)
Ti Gr.11(Ti-Pd)

Ti Gr.11(Ti-Pd)

1. Introduce – Alloy…
50Ni50CrNb(Ni-Cr-Nb)

50Ni50CrNb(Ni-Cr-Nb)

1. Introduce – 50Ni50CrNb,…

Visitors

today : [slimstat f=’count’ w=’ip’]

total: 46347