Indonesia's Geological Agency under the Ministry of Energy and Mineral Resources reported that 2 million hectares of land in Indonesia have nickel mining potential, of which only 800,000 hectares have been or are being exploited.

Nickel is listed by the Ministry of Energy and Mineral Resources as one of 47 important mineral commodities. According to Tri Winarno, Director General of Mining Plan Development at Indonesia's Agency for Minerals and Coal, as of November 2023, Indonesia's nickel reserves are reportedly around 5 billion tons, with 3.5 billion tons of laterite and 1.5 billion tons of limonite.

Tri Winarno explained that mechanisms have been established to increase nickel reserves, including regional auctions and allocations.

Exploration studies are conducted by research institutions after winning bids on designated areas. While there is potential for discovering new nickel reserves, the specific locations have not yet been determined.

Tri Winarno mentioned that these areas might be located around Sulawesi Island. However, as of now, there are no plans for discovering new nickel reserves.

As of June 2023, nickel has become increasingly important in the mining industry, primarily used in stainless steel production.

The growing shift from gasoline-powered vehicles to electric vehicles further fuels the demand for nickel.

Indonesia possesses abundant nickel reserves, making it the world's largest nickel producer.

According to the 2020 Nickel Handbook published by Indonesia's Ministry of Energy and Mineral Resources (ESDM), Indonesia's nickel reserves reached 4.5 billion tons.

Furthermore, its estimated resources are even more extensive, totaling 11.7 billion tons. Approximately 90% of nickel resources are distributed in Central Sulawesi, South Sulawesi, Southeast Sulawesi, and North Maluku.

The allure of Indonesia's nickel potential has attracted numerous investors eager to mine and establish refineries (smelters).

However, nickel, like coal, is a non-renewable commodity. Continuous mining over time may deplete its resources. Calculating the elasticity of nickel reserves requires considering refining technology.

There are two types of nickel: high-grade nickel (laterite) with content exceeding 1.5% and low-grade nickel (limonite) with content below 1.5%.

Laterite nickel is processed using pyrometallurgical technology. As of 2020, ESDM recorded laterite reserves of 2.6 billion tons.

Pyrometallurgical plants process up to 95.5 million tons of laterite nickel annually, estimating the lifespan of laterite reserves until 2047.

As for limonite nickel, with reserves of 1.7 billion tons, it is processed using hydrometallurgical technology. Hydrometallurgical plants require 24 million tons of limonite nickel annually. Based on these figures, limonite nickel reserves are projected to last until 2093, approximately 70 years or more.

The Indonesian Mining Association (PERHAPI) estimates the lifespan of laterite reserves at approximately 16 years. This calculation is based on laterite reserves of approximately 3.3 billion tons reported in geological data, with current demand from pyrometallurgical plants (RKEF) at approximately 215 million tons per year.

In contrast, the 1.67 billion tons of limonite reserves and the 60 million tons per year demand from hydrometallurgical plants (HPAL) suggest that limonite nickel reserves may be depleted in 30 years.

Perhapi Chairman Rizal Kasli stated, "HPAL products are commonly used as materials for electric vehicle batteries." He emphasized that refineries processing limonite nickel remain relatively few due to the relatively high capital expenditure involved.

(Source: Internet)