Vale Indonesia halts nickel mining on delayed work plan approval

[LONDON] Vale Indonesia has suspended operations at its nickel mines after not receiving approval for its annual work plan from the authorities.

Despite the halt, approval is expected soon and the delay is unlikely to impact overall operational sustainability, the joint venture between Vale’s base metals unit and the Indonesian government said in a filing.

Delays in mining quota approvals are not unusual, but traders are honing in on supply from the world’s top producer after the government said that it planned to cut output this year. Nickel prices largely trod water in 2025 before rallying sharply in December on expectations for a tighter market.

Nickel futures on the London Metal Exchange were 1 per cent higher at US$16,855.00 a tonne by 11.15 am Singapore time. The metal surged more than 12 per cent in December, the biggest monthly gain since April 2024.

Vale Indonesia is one of the country’s biggest nickel miners and is making large investments in high pressure acid leach plants, which produce a form of the metal used by the electric vehicle sector. HPAL capacity is set to expand significantly in Indonesia this year, from six facilities to at least 14. BLOOMBERG