The Ministry of Energy and Mineral Resources (ESDM) has reported a diminishing nickel reserve in Indonesia, particularly for high-grade saprolite nickel. Nickel is among the 47 critical mineral mining commodities identified by the ministry.
“For saprolite nickel, we have approximately 13 years left, while for limonite, there are still about 33 years,” Tri Winarno, Director of Mineral Business Development at the Ministry of ESDM, said on Tuesday, March 19, 2024.
Saprolite is known for its high nickel content, while limonite contains lower nickel grades. Previously, in November 2023, Tri mentioned that Indonesia’s nickel reserves amounted to five billion tons, consisting of 3.5 billion tons of saprolite and 1.5 billion tons of limonite.
Tri also provided insights into the reserve lifespan of other mineral commodities, including copper with 23 years, bauxite with 97 years, tin with 31 years, and gold and silver with relatively over 100 years.
He outlined three strategies in an attempt to maintain Indonesia’s mineral reserve sustainability, especially for critical minerals.
“We hope to acquire significant reserves through expansion, assignments and auctions,” Tri said.
The ESDM ministry has classified 47 mineral mining commodities as critical, including nickel. Regarding auctions, Tri previously mentioned that the mechanism would involve offering bids to research institutions for exploration studies.
Concerning the discovery of new nickel reserves, Tri suggested that potential areas might be around Sulawesi Island. However, there are currently no plans for new nickel reserve probing activities.
Considering the reserve lifespan, Member of the House of Representatives’ Energy and Industry Commission VII, Eddy Soeparno, emphasized the need for evaluating nickel smelters.
“The reserve sustainability is not very large, while the smelter capacity is significant. Therefore, an evaluation of the next smelter licensing process is necessary,” Eddy said.
The Geological Agency of the Ministry of ESDM has reported that Indonesia has a land area of 2 million hectares with nickel potential. However, only 800,000 hectares have been mined or exploited.
“The potential nickel-bearing areas are still quite extensive, with a formation potential of 2 million hectares. Currently, only 800,000 hectares have mining permits (IUP),” Rita Susilawati, Secretary of the Geological Agency, said in January 2024.
Referring to this data, the remaining unexplored potential nickel land area currently amounts to 1.2 million hectares. Based on Geological Agency data, Indonesia’s total ore reserves currently reach 5 million tons with a resource amount of 17.33 million tons.
