Bisnis.com, JAKARTA — Indonesia’s pioneering nickel smelting company known for having the lowest production costs in the world, PT Trimegah Bangun Persada or Harita Nickel (NCKL), is facing a headwind as nickel supply floods the market and a sharp spike in key raw material prices threatens to erode its profits.
According to Bloomberg, sulfur prices — a key chemical used in acid production — have more than tripled over the past year due to rising demand, placing a significant burden for producers that use high-pressure acid leaching (HPAL) technology. This method allows for the extraction of metals from low-grade ores using chemicals rather than blast furnaces.
