Indonesia Set to Become World’s Largest Nickel Producer, Says Eramet Indonesia CEO
Jérôme Baudelet, CEO of nickel producer Eramet Indonesia, predicts that Indonesia will become the world's largest nickel producer in the next decade, thanks to significant increases in production volumes. In 2023, Indonesia supplied 55% of the world’s total nickel production, highlighting the country’s growing influence on the global nickel market.
Baudelet expects that by 2034, Indonesia could account for as much as 70% of global nickel production. Speaking on November 7, 2024, he highlighted the rapid growth at Weda Bay Nickel, Eramet's joint venture with Tsingshan, which is expected to produce 32 million tons of nickel by the end of 2024, according to the production quotas set in the Work Plan and Budget (RKAB).
Despite the positive outlook for production, Baudelet pointed out that there is currently an undersupply of nickel ore in Indonesia. To meet demand, imports of nickel ore from the Philippines have surged, reaching around 7 million tons in the first ten months of 2024 compared to just 374,454 tons in all of 2023. Much of this imported ore has been shipped to the port of Weda Bay.
The increased demand for nickel ore has pushed prices above the minimum benchmark price (MSP) set by the Indonesian government, even as the global market remains slightly oversupplied with finished nickel products—estimated at around 60,000 tons, or about one week's consumption.
Eramet remains optimistic about future growth in Indonesia. Baudelet outlined ambitious plans to boost Weda Bay's production to 60-65 million tons annually in the medium term, while maintaining a focus on innovation and sustainable practices. "We are committed to balancing supply and ensuring we do not produce beyond what the market needs," he said.
Baudelet also emphasized the strategic importance of Indonesia for Eramet, noting that the company aims to support the country's economy while forming strategic partnerships both locally and internationally to foster growth in the nickel industry. "Indonesia is a top priority for Eramet in our nickel business," he concluded.
