Indonesia is considering a substantial relaxation of nickel ore mining production limits in the second half of this year. This move could alleviate raw material supply shortages for domestic smelting enterprises but may also put downward pressure on the international price of this key metal for power batteries.

Several unnamed sources with knowledge of the matter have revealed that Indonesia's Ministry of Energy and Mineral Resources has informed some mining companies of a plan to adjust the total annual nickel mining quota, locally known as RKAB, to 360 million tonnes by mid-year. The quota approved and issued for the first half of the year was only about 260 million tonnes.

The sources indicated that the plan to relax the quota is not yet finalized and remains subject to change, with the final decision resting with Energy Minister Arifin Tasrif.

Major nickel mining companies are planning to submit applications for quota increases early next month.