The nickel price and production cuts in Indonesia

Fears of lower production naturally drive up the price of nickel. At times, a ton of the metal even cost more than US$18,000. Some suspect that the sharp rise in gold and silver prices at the end of January has prompted investors to switch to copper contracts in some cases. Indonesia appears to want to reduce supply and support nickel prices. There is currently a global surplus of nickel. Annual mining permits are issued by the authorities in Indonesia, and they can also adjust mining volumes during the year.

For example, the mining volume of Indonesia’s largest mine was reduced from 42 million tons in 2025 to 12 million tons of nickel in 2026. Production should be expanded to 60 million tons. The nickel price has already risen significantly since mid-December. Macquarie has already raised its forecast for the nickel price in 2026 by 18 percent to US$17,750 per ton. Nickel is used in stainless steel and for batteries in electric vehicles. Copper is equally essential for these industries.

In 2025, the copper market was oversupplied. Nevertheless, the price of copper has risen significantly in the last twelve months. This is because copper is urgently needed for the energy transition, for industry, and for increasing electrification. And the supply situation has become vulnerable. At the same time, demand for copper is rising, while supply is hardly increasing. Those who want to invest in nickel and copper can look at the companies that own these raw materials.

Canada Nickel Company – https://www.commodity-tv.com/ondemand/companies/profil/canada-nickel-company-inc/ – has nickel and cobalt in its Crawford project in Ontario. According to the Canadian government, this is a project of strategic importance. The company has published very good mineral resource estimates for eight of nine properties. And the company has submitted NI 43-101 reports for two nickel sulfide projects.

Meridian Mining PLC (formerly Meridian Mining UK Societas) – https://www.commodity-tv.com/ondemand/companies/profil/meridian-mining-uk-societas/ – has the promising Cabaçal project (copper, gold, silver) in Brazil in a region with a well-developed and productive mining sector. The resources for the Cabaçal deposits have just been expanded, which is very encouraging.

Current company information and press releases from Canada Nickel Company (- https://www.resource-capital.ch/en/companies/canada-nickel-company-inc/ -) and Meridian Mining (- https://www.resource-capital.ch/en/companies/meridian-mining-uk-societas/ -).

Further information is also available in our new battery metals report at the following link: https://www.resource-capital.ch/en/reports/view/battery-metals-report-2025-11-update/

Sources:

https://www.mining.com/nickel-price-jumps-as-indonesias-top-mine-cuts-output/;

https://www.resource-capital.ch/en/reports/view/battery-metals-report-2025-11-update/

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