Connect with Us
Nickel Trading
Understanding the Nickel Supply Chain in Indonesia
Regulated by Design: Indonesia separates mining production and trading under distinct licensing frameworks, creating a structured and regulated flow of material from producer to smelter.
The Flow of Ore: Producers typically sell lateritic nickel ore to licensed domestic traders, who then supply approximately 60+ operating smelters across Indonesia’s integrated nickel industry.
Government Price Framework (HPM): Nickel ore pricing is governed by the HPM (Harga Patokan Mineral), a government-set benchmark that establishes minimum pricing based on grade and moisture content.
Premiums Create Market Stability: In practice, smelters frequently pay premiums above HPM to secure continuous ore supply, particularly during periods of tight feedstock availability. These premiums incentivize sourcing and delivery, supporting producer cash flow while helping maintain throughput at downstream facilities.
Trading Unlocks Strategic Optionality: Operating within this regulated structure provides multiple growth pathways beyond mining alone, including domestic aggregation, supply optimization, and participation in downstream value chains.
Access to High-Demand Intermediate Products: Indonesia’s smelters produce globally sought-after intermediate products such as Mixed Hydroxide Precipitate (MHP), Nickel Pig Iron (NPI), ferronickel, and matte. This creates international brokering opportunities within both the battery materials and stainless steel supply chains.
Direct-to-Smelter Sales Capability
Holding both production and trading licenses allows the Company to sell its own nickel material directly to smelters, reducing reliance on third-party intermediaries. This structure provides greater control over pricing negotiations and commercial terms.
Scalable Standalone Trading Platform
The trading license enables the Company to source nickel ore from producers across Indonesia and supply domestic smelters within the regulated HPM pricing framework. With more than 60 operating smelters nationally, including 14 within approximately 170 km of our operating area, this creates a scalable commercial platform beyond internal production.
Brokering High-Demand Intermediate Products
The trading license also permits participation in the marketing and brokerage of processed nickel products produced by Indonesian smelters. These include:
-
Nickel Pig Iron (NPI) & Ferronickel: Primarily used in stainless steel manufacturing.
-
Matte & Mixed Hydroxide Precipitate (MHP): Intermediate products used in battery material supply chains, with MHP and matte capable of further refining into nickel sulfate or Class 1 nickel for batteries, high-performance alloys, and strategic applications including national defense technologies.
Market-Driven Commercial Optionality
Dedicated Trading Subsidiary
Through our wholly owned subsidiary, PT Nusa Niaga Corp, we secured Indonesia’s Mineral Transportation and Sales Permit (IPP Nickel Traders License). This enables us to trade nickel legally alongside our production operations, expand our commercial reach, and diversify revenue as we scale in the world’s leading nickel district.
Internal Trading Expertise
Our Indonesian executive team has deep experience in nickel trading across the supply chain along with production. Their expertise and long-standing relationships strengthen on-the-ground execution, help us navigate market dynamics, and support the growth of our trading operations and partnerships in Indonesia.
