Due to Temporary Closing of the Mandiodo Block, RI Imports Nickel from the Philippines

Illustration (Photo: Doc. Antara)

JAKARTA - Nickel companies in Indonesia are known to be importing nickel from the Philippines due to the temporary suspension of mining operations in the Mandiodo Block.

This was the result of the detention of former Director General of Minerals and Coal Ridwan Djamaluddin by the Attorney General's Office as a suspect in a case of alleged corruption in nickel ore mining in the PT Antam mining business permit (IUP) area in the Mandiodo Block, Southeast Sulawesi.

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif explained that the company that imported was the company that had been mining in the Mandiodo Block and had a definite buyer or offtaker in the form of a smelter that needed a nickel supply for smooth production and downstreaming.

"Indications are that the company that imports is the company that has been taking raw materials from Mandiodo, which is problematic because Mandiado is still in process," said Arifin Tasrif in a working meeting with Commission VII of the House of Representatives (DPR RI), Thursday, August 31.

Therefore, nickel mining companies still import from abroad.

"So they took this step because overall they are not allowed to export ore. Mining producers are already tied to smelters that are already running," explained Arifin.

Previously, the Acting Director General of Minerals and Coal (Minerba), Muhammad Wafid, revealed that there were domestic companies importing nickel due to a lack of supply.

"What is clear is that there is an issue of nickel being imported from the Philippines because the smelter lacks the material," said Wafid, Monday, August 28.

For this reason, his party has calculated all nickel Financial Plans and Budgets (RKAB) issued to ensure sufficient raw materials for domestic smelters.

"I said that I tried to calculate all the RKAB that we have agreed on, how much nickel input is needed, how much is the result. It's still enough," concluded Wafid.