China Protests Indonesia Nickel Curbs Threatening $30 Billion in Projects
Updated
Updated · Forbes · Jun 16
China Protests Indonesia Nickel Curbs Threatening $30 Billion in Projects
3 articles · Updated · Forbes · Jun 16
Summary
A Chinese embassy letter sent in late April warned Indonesia that new nickel mining rules threaten the operational viability of nearly all battery-grade nickel projects backed by Chinese firms.
Indonesia has tightened mining approvals and forced Chinese-controlled miners and smelter operators to cut output to conserve ore reserves and limit environmental damage, raising the risk of a nickel shortfall for China.
The embassy estimated the measures could hit $30 billion in existing investments, jeopardize another $20 billion in planned projects and cut exports by about $23 billion.
The dispute adds to broader supply pressure on China, which is already facing an oil squeeze and a possible Australian iron ore disruption that could remove 800,000 tons a day from BHP shipments.
As China secures African mines, are Australia and Indonesia's days as top commodity suppliers numbered?
While Western nations plan, China buys the world's mines. Is the global race for critical minerals already lost?
Is the world trading one environmental crisis for another in its rush to produce EV batteries?
Indonesia’s Nickel Power Play: $65 Billion in Chinese Investment at Risk as Resource Nationalism Roils Global Markets
Overview
Indonesia’s nickel industry, fueled by over US$65 billion in Chinese investment, has become a key part of Indonesia-China economic ties. Since late 2024, President Prabowo Subianto has focused on boosting state revenue by tightening control over the nickel sector. This includes sharp mining quota cuts, higher royalties, stricter foreign exchange rules, and the creation of a new state-owned enterprise to centralize exports. These moves aim to maximize national benefit and increase state oversight, but have triggered strong backlash from Chinese investors, putting future cooperation and investment at risk.