Nickel prices rise after partial seizure of Weda Bay nickel mine

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Nickel prices on the London Metal Exchange (LME) rose 1% to $15,305 a ton after the Indonesian government confiscated part of China's Castle Peak Holding Group's holding of the Weda Bay nickel mine.This confiscation covers an area of 148 hectares of mining land and is due to suspected license violations.Weda Bay is the world's largest battery-grade nickel production site, developed by a joint venture between Castle Peak Holdings and Eramet of France.

After the confiscation of LME nickel futures prices rose 1% in a single day, other industrial metals were mixed: copper rose 0.1%, aluminum rose 0.2%, lead fell. Given that Indonesia contributes to the global supply of more than 50% nickel, and the recent impact of the rainy season and export quota restrictions, Indonesian nickel smelters have faced a shortage of raw materials.

President Prabowo also emphasized that he would crack down on illegal miningAnalysts point out that the incident highlightsPolicy Risks of Indonesia as a Major Nickel Producerthat could exacerbate volatility in the global electric vehicle battery supply chain.

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