Indonesian Nickel Smelter Developers Short on Funds

Base Metals Investing

Reuters reported that nickel smelter developers in Indonesia are putting projects on hold. With metals prices near their lowest in over a decade, they are struggling to get financing.

Reuters reported that nickel smelter developers in Indonesia are putting projects on hold. With metals prices near their lowest in over a decade, they are struggling to get financing.
As quoted in the market news:

Indonesia was the world’s top exporter of nickel ore until 2014 when it banned shipments in an effort to push miners to develop downstream, or mineral processing, industries.
With abundant reserves of relatively high quality ore investors say there is potential for developing nickel smelters in Indonesia, but the current market is challenging.
“Banks, primarily government banks, are allergic to providing support, credit (and) working capital etc to miners,” Joseph Renyut, an advisor to smelter operator Cahaya Modern Metal Industri, told Reuters on the sidelines of a nickel industry conference in Jakarta.

Click here to read the full Reuters report.

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