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Indonesian nickel miners working to launch local metals exchange in 2026

The secretary general of the Indonesian Nickel Miners Association said that they are preparing to launch a domestic metal exchange in 2026 for futures contracts on nickel and other metals.

Nickel is produced in Indonesia, which has the largest reserves worldwide.

The government has prohibited exports of ore nickel since 2020 to encourage investment in smelting. Recently, the authorities have shown a desire to exert more control over nickel prices. Nickel prices ended 2024 with a four-year low.

Secretary general Meidy Kathrin Lengkey told the Shanghai Metals Market Indonesia Critical Minerals Conference & Expo that the government has approved the proposal by the nickel miners' group APNI to establish an Indonesian Metal Exchange.

Meidy, late on Tuesday, said that the exchange's initial focus will be nickel pig iron, but it plans to expand its scope to include other nickel products and other metals.

The group is currently working on the structure and concept of a new exchange, based on existing exchanges such as the London Metal Exchange or the Shanghai Futures Exchange.

She said, "Our ambition is control the world with nickel."

Edric Koh, with the LME, said that he was pleased by the plan. He highlighted the potential need for regional pricing discovery based upon local demand and supply dynamics, which could be a complement to a global benchmark price.

Daniel McElduff, Abaxx Exchange, said that the plan must be carefully considered in terms of its timing and regulatory context.

"Does your product have a commercial purpose?" Will it encourage buyers and sellers to participate in the market on a voluntary and active basis? If the answer is "no", then you are not using your resources well. (Reporting and writing by Gayatri Sroyo, editing by Kim Coghill.

(source: Reuters)