23 July 2024 – In the fight against illegal nickel mining and to improve state revenues, Indonesia has expanded its online tracking system SIMBARA from coal to nickel. Copper demand is likely to continue to rise significantly in the medium term, Chinese copper smelters are already in an aggressive consolidation battle for scarce resources. And chrome demand in China remains robust.
SIMBARA: Indonesia launches nickel and tin online tracking system
On Monday, Indonesia expanded the SIMBARA online system, which had been monitoring coal mining since 2022, to include transactions between nickel and tin mines. According to the local authorities, this should improve accountability and generate significantly higher tax revenues.
SIMBARA also in action against illegal nickel mining?
It is to be expected that the Indonesian authorities will also use the SIMBARA online tool for measures against the illegal mining of nickel and tin. In recent years, there have been repeated reports that large quantities of nickel ore have been mined without a permit, putting a strain on Indonesia’s already dwindling reserves of this important raw material for batteries and stainless steel.
Energy transition drives copper demand
Deutsche Bank analysts continue to expect a significant increase in demand for copper as a result of the global energy transition. A less restrictive monetary policy by the world’s major central banks is also expected to lead to an increase in investment in infrastructure projects.
This expected surge in demand will be met by a shortage of supply, which had already led to copper prices of more than USD 11,000/MT in May 2024. With regard to China, where an aggressive consolidation between copper smelters has broken out due to scarce copper availability, an improvement in the supply situation does not appear to be on the cards.
Chrome demand from China remains robust
Demand for chrome and ferrochrome remains robust, particularly due to strong demand from China. South Africa is the main supplier of chrome ore.
However, in order to meet the continuing strong demand for chrome and ferrochrome in the world’s most populous country, China has started to build up suppliers elsewhere. And is now sourcing a growing proportion of the raw material from countries such as Pakistan, Zimbabwe, Iran, Turkey and Papua New Guinea.
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