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Nickel Industrial Production Process in Indonesia

The nickel industry in Indonesia is an important economic sector and Indonesia has over half of global nickel reserves. The production process involves mining, processing, purification, and producing final products like batteries, stainless steel, and heavy equipment. While it provides economic benefits, it also produces waste that must be managed responsibly.

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33 views4 pages

Nickel Industrial Production Process in Indonesia

The nickel industry in Indonesia is an important economic sector and Indonesia has over half of global nickel reserves. The production process involves mining, processing, purification, and producing final products like batteries, stainless steel, and heavy equipment. While it provides economic benefits, it also produces waste that must be managed responsibly.

Uploaded by

tieand.riefkhy
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Nickel Industrial Production Process in

Indonesia.

Dosen Pengampu : Mrs. AMELIA SUGANGGA, S.S., MM.


Mata Kuliah : English For Economics And Bisnis
DisusunOleh :
Ryan Ainun Rifki Pramuka Nim 23120036
Rifqa Istna Mahdiyah Nim 23120005
Muhammad Bagus Eky Fadilah Nim 23120029
S1 Manajemen Sumber Daya Manusia
STIE Indonesia Malang
The nickel industry in Indonesia is experiencing a positive trend driven by increasing global demand,
especially for clean energy technology. International Energy Agency (IEA) projections show that demand
for nickel will continue to grow, especially for new renewable energy purposes.
The consistently increasing global nickel price also has a positive impact on the nickel mineral
benchmark price (HPM) in Indonesia. This creates optimism for the future of the nickel industry in
Indonesia, especially because this country has more than half of the world's nickel reserves.
In Indonesia, nickel reserves are spread widely, with the majority being in Central Sulawesi, South
Sulawesi, North Sulawesi, North Maluku and Papua. Areas such as Kolaka, Morowali and East Luwu in
Sulawesi, as well as Halmahera and Ternate Island in Maluku, are nickel mining centers.
The quality of Indonesian nickel is recognized as the best in the world, especially first-class nickel which
is needed for the electric car battery industry and stainless steel manufacturing. Nickel demand from the
battery segment is predicted to increase along with the growth of electric vehicles in the future.
Apart from that, nickel is also used in the processing industry, geothermal energy generation,
manufacturing machine parts, and much more. Indonesia plays an important role in the world nickel
supply chain, and the policy of banning nickel ore exports aims to encourage the development of
domestic downstream industries.
Even though environmental challenges still exist, such as water and soil pollution, the nickel industry in
Indonesia remains an important economic engine and a major opportunity for economic growth in
Indonesia and the Southeast Asian region.

• Nickel Industrial Production Process.

The nickel industrial production process is divided into several main stages, namely:
1. Mining:
Open-pit mining: carried out by digging up soil and rocks that contain nickel.
Underground mining: carried out by creating tunnels and holes to reach nickel deposits.
2. Processing:
Crushing and grinding: nickel ore is crushed and crushed into smaller sizes.
Classification: nickel ore is classified based on its size and nickel content.
Screening: nickel ore is filtered to separate nickel minerals from other minerals.
Extraction: nickel is extracted from its ore using various methods, such as:
Hydrometallurgy: nickel is dissolved in a chemical solution and then separated.
Pyrometallurgy: nickel is melted and then separated from other minerals.
3. Purification:
Matte nickel: rough nickel resulting from processing is purified to produce pure nickel.
Electrolysis: pure nickel is produced by electrolysis of matte nickel.
4. Final product:
Pure nickel: pure nickel can be used in a variety of applications, such as:
Battery: nickel is used as raw material for lithium-ion batteries.
Stainless steel: nickel is used to make stainless steel.
Heavy equipment: nickel is used to make heavy equipment.
Flow diagram of the nickel industry production process:
Mining
|
Processing
|
Classification
|
Filtering
|
Extraction
|
Purification
|
Electrolysis
|
The final product
Addition:
The nickel industrial production process can produce waste that is dangerous for the environment.
Therefore, it is important for nickel companies to manage their waste in a responsible way.
Indonesia is one of the largest nickel producing countries in the world.
In general, the government has only begun to pay attention to the downstream industry policy with the
issuance of Law Number 4 of 2009 concerning Mineral and Coal Mining. This regulation was then
amended by Law Number 3 of 2020 and Law Number 11 of 2020 concerning Job Creation. The
Government made another breakthrough in 2020 by issuing a ban on the export of nickel ore with a grade
below 1.7 percent. This policy has been effective since January 1 2020. This policy is contained in
Presidential Regulation Number 55 of 2019 concerning the Acceleration of the Battery Electric Vehicle
Program which was issued in August 2019. The industrial intervention policy taken by the Government is
not without risk. Initially, the export ban policy caused several people to lose their jobs, reduced foreign
exchange from exports, and also reduced government revenues.
However, this risk is a short-term consequence. Now this industrial policy is starting to produce good
results. Now Indonesia has an integrated steel industry chain. In 2020, Indonesia had 13 nickel smelters
(only 2 in 2014) and is targeting 30 smelters by 2023.
Activities of the nickel processing and refining factory (smelter) managed by PT Virtue Dragon Nickel
Industry, a subsidiary of Jiangsu Delong Nickel Industry from China in Morosi, Konawe Regency,
Southeast Sulawesi, Monday (29/4/2019). The nickel smelter, which started operating last February, is
expected to absorb local workers and empower the community during the production and mining period.
The smelter's production capacity reaches 600,000 – 800,000 metric tons of nickel pig iron (NPI).

Source: https://ekonomi.republika.co.id/berita/rkm4oh478/masa-depan-cerah-industri-nikel-
indonesia
https://kompaspedia.kompas.id/baca/paparan-topik/industri-nikel-indonesia-sejarah-produksi-kebijakan-
dan-tantangan
https://en.wikipedia.org/wiki/Nikel
https://databoks.katadata.co.id/tags/nikel
https://modi.minerba.esdm.go.id/

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