By Romel S. Gurky
French metals giant Eramet SA said on Wednesday that its Indonesian unit PT Weda Bay Nickel (WBN) booked a mixed performance for its Indonesian nickel operations in the first half of 2025. While mining activities were impacted by the initiation of new production sites and limited operating permits, production at its Nickel Pig Iron (NPI) plant saw significant growth.
WBN’s external nickel ore sales in H1 2025 totaled 11.0 million wet metric tons (Mwmt), an 8% decrease compared to H1 2024. The drop was mainly driven by an unfavorable product mix, with saprolite ore sales falling 22% to 8.3 Mwmt. However, limonite ore sales increased significantly, doubling to 2.7 Mwmt. Internal consumption for the NPI plant reached 1.5 Mwmt during the period.
The average grade of nickel ore sold in H1 2025 declined to 1.6% from 2.0% in the same period last year, while moisture content increased by approximately 10%. These changes were mainly due to lower-grade ore from newly established mining areas and less effective ore selectivity than initially expected. Mining production costs also increased, driven by lower productivity, including a higher strip ratio and longer haulage distances. However, these challenges were somewhat offset by increasing premiums on nickel prices.
Read also : Eramet reports mixed Q1 results for Indonesia nickel operations
Despite these challenges in the mining sector, WBN’s NPI plant saw a 21% increase in production, reaching 17,000 tonnes of nickel in the first half of 2025. This positive operational performance led to a 27% rise in NPI sales, which reached 7,400 tonnes of nickel.
Looking ahead, WBN expects an increase in nickel ore production and sales in the second half of 2025. The company received a revised work plan (RKAB) in July 2025, increasing the total ore production target to 42 Mwmt for 2025, including an additional 10 Mwmt of limonite ore. This increase is expected to support the growth of High-Pressure Acid Leach (HPAL) production at the Indonesia Weda Bay Industrial Park (IWIP), North Maluku.
However, challenges remain. The average grade for nickel ore sold in the second half of 2025 is expected to remain stable compared to the first half, while mining production costs are likely to remain higher than in 2024. The introduction of new royalties, calculated based on a variable percentage indexed to the LME nickel price, will also impact costs.
Editing by Alexander Ginting
