Drought slows ramp-up at NI’s Indonesian nickel mine

Spanish Market: Battery materials, Metals
15/09/26

Indonesia-focused Australian producer Nickel Industries (NI) has been forced to slow the ramp-up of its 72,000 t/yr Excelsior Nickel Cobalt (ENC) project in Central Sulawesi because of drought conditions in the region.

NI had ramped up ENC to 50pc of nameplate capacity by early August, but a lack of rainfall will force the facility's water-intensive high pressure acid leach facilities to operate at just 30pc of capacity until there is more rain, the company said on 15 September.

The company's nearby Hengjaya mine recorded 4mm of rain in August, well below the historical August average of 222mm. NI expects water availability to return to normal by December when the wet season begins.

The disruption may support nickel prices, which traded at $16,202.50/t on the London Metal Exchange (LME) on 14 September.

Indonesia's Meteorology, Climatology and Geophysics Agency predicts that this year's very strong El Nino conditions and high sea surface temperatures will persist until early 2027.

NI's rotary kiln electric furnaces (RKEF), which are used to produce nickel matte and nickel pig iron, have not been affected by the water shortage, the company said. Three of the company's RKEFs are located at IMIP, while the fourth is located in Java's Indonesia Weda Bay Industrial Park.

The company's downstream production also depends on government licences. The company received an exemption from government's MHP export restrictions earlier this year, and is currently applying for an Izin Usaha Industri (IUI) commercial sales licence for its nickel cathode, nickel sulphate, and cobalt products, which it expects to receive by October.

Meanwhile, the company has sold 9mn wet metric tonnes (wmt) of nickel ore this year as of 31 August, and expects to reach its Indonesian government-allocated work plan and budget (RKAB) nickel sales quota of 14.3mn wmt. The company has lodged an application to increase its quota for this year.

By Daniel Gage-Brown

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

17/09/26

China's Zhongjin Lingnan resumes zinc mine

Shanghai, 17 September (Argus) — Major Chinese zinc and lead producer Shenzhen Zhongjin Lingnan has resumed operations at its Fankou zinc-lead mine, the company announced today. The company announced on 5 August that the operations at its Fankou zinc-lead mine had been suspended following a roof-collapse accident that resulted in one fatality. The company has not disclosed the total production loss resulting from the suspension. Zhongjin Lingnan produced 253,805t of contained zinc and lead in concentrate in 2025. The Fankou mine accounts for around half of the company's concentrate output, producing about 120,000-130,000 t/yr of contained zinc and lead, according to the company. China's zinc concentrate market has been extremely tight this year, because of global mines disruptions and higher domestic refined zinc production supported by high sulphuric acid by-product prices. Argus assessed imported zinc concentrate TCs at -$130/dry metric tonne (dmt) to -$105/dmt on 16 September, down significantly from -$20/dmt to $10/dmt on 8 April. The resumption of the Fankou mine is unlikely to reverse the deeply negative TC environment, market participants said. Smelters typically begin replenishing concentrate inventories in late September or early October ahead of winter operations, which is likely to exert further downward pressure on concentrate TCs in the coming months. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

China's HBIS raises ferro-silicon tender in September

17/09/26

China's HBIS raises ferro-silicon tender in September

Beijing, 17 September (Argus) — Chinese state-owned steel producer Hebei Iron and Steel (HBIS) has raised its tender price for September ferro-silicon, in response to higher spot offers of the bulk alloy. Its tender price for 72pc ferro-silicon rose to 6,340 yuan/t ($946/t) in September, up by Yn160/t from August and by Yn40/t from its provisional tender price, according to market sources. Ferro-silicon producers have raised their offers, driven by higher production costs of coke and semi-coke feedstocks, linked to firmer coal prices. Coal prices rose in the first half of September because of tightening supply, with a number of mines in Shanxi province remaining closed or operating under enhanced safety inspections. Shanxi is China's largest coal-producing province and a key production hub for magnesium metal, coke and ferro-alloys. Several other steel mills also boosted their purchase prices for the bulk alloy to Yn6,200-6,400/t delivered and paid by acceptance bill for September delivery, up by Yn100-200/t against the previous month. Argus- assessed prices for 72pc ferro-silicon hit a 20-month high at Yn5,900-6,000/t ex-works on 8 September, up by Yn150/t from the previous assessment on 1 September. But prices fell to Yn5,700-5,800/t on 15 September, tracking lower future prices. HBIS purchased 3,804t of ferro-silicon in September, up by 164t from August, as it increased operating rates after regular equipment maintenance in August. HBIS produced 16.44mn t of crude steel in January-June this year and bought 31,263t of ferro-silicon in 2025, according to its half-year report and industrial data. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Canadian copper miner expands Panama shipments

16/09/26

Canadian copper miner expands Panama shipments

Kingston, 16 September (Argus) — Canadian miner First Quantum continued to ship copper concentrate produced in Panama this week, Panama's commerce minister Julio Molto said. The firm shipped 38,000 metric tonnes (t) to India, after sending a combined 33,000t to Spain and Bulgaria in August from the stockpile of about 38mn t at its shuttered mine that was operated by its subsidiary Minera Panama. The shipments are from output that was accumulated before Panama's supreme court ordered the mine closed at the end of 2023, citing an unconstitutional license. About 6.3mn t of copper ore from the closed mine have been processed, leaving 31.6mn t that will be processed "in another 13 months," Molto said. Panama's president Jose Raul Mulino created a ministerial committee in July to decide the fate of the mine, "but there is no planned reopening" as the government is "respecting and abiding by the supreme court ruling", Molto said. The mine and the remaining risks were not declared unconstitutional and the government does not have the technical capacity to manage such a major enterprise, he said. "The accumulated concentrate is being managed within the framework of a safe preservation plan," he added. "We could not abandon the stockpile." Panama's commerce ministry in April authorized Minera Panama to export the material as the government delayed until the end of the year a decision on the future of the $10bn investment by First Quantum that produced 331,000t in 2023. The stockpiled ore is intended to "mitigate environmental and operational risks associated with prolonged on-site storage," First Quantum said. "This activity does not constitute a reopening of the mine and will not involve any new drilling, blasting, or reactivation of mining operations", it added. The supreme court's order to close the mine followed several weeks of street protests over the terms given to First Quantum for the continued operation of the mine. The mine was accounting for about 40pc of First Quantum's annual revenue and 1.5pc of global copper output when it was closed, according to the company. The closure has cost Panama $6.5bn, equivalent to more than 5pc of its economic output, the government said. By Canute James Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US Fed lifts rate for 1st time since 2023: Update

16/09/26

US Fed lifts rate for 1st time since 2023: Update

Adds comments from Warsh, other information Houston, 16 September (Argus) — US Federal Reserve policymakers raised their target interest rate by a quarter point today, the first hike since late 2023, citing "elevated" uncertainty due, in part, to "geopolitical developments." The Fed's Federal Open Market Committee (FOMC) raised the federal funds rate to 3.75-4pc, after holding the rate unchanged through five prior meetings this year. "Price stability is foundational to economic growth," Fed chair Kevin Warsh told reporters after the meeting. "We took an important step today to deliver it." In response to a question regarding rising borrowing costs, Warsh said the American economy appears to be strengthening, citing an increased demand for capital — an apparent reference to the artificial intelligence-fueled buildout of data centers. In their median estimates in their economic projections, officials penciled in one more likely quarter-point rate hike this year, with no hikes next year, even as eight of 18 survey participants forecast an additional hike next year. "While uncertainty remains elevated owing, in part, to geopolitical developments, domestic spending has been resilient," the FOMC statement said. "Productivity growth is strong, and capital investment is robust. Job gains have kept pace with the workforce... Inflation remains elevated." The rate hike comes as renewed fighting in the Mideast Gulf is intensifying a global energy squeeze that began with the start of the war at the end of February. It also comes less than two months before key midterm elections expected to cost President Donald Trump control of at least one of the two houses of congress. In their median estimates, officials project inflation, as measured by the PCE index, to end the year at 3.7pc, slowing to 2.3pc next year and to 2.1pc in 2028, up slightly from their 2pc long term target. They estimate GDP growth to end the year at 2.3pc, compared with 2.2pc in the prior projections in June. Unemployment is expected to end the year at 4.1pc, down slightly from 4.2pc in the June forecast. Ahead of the meeting Wednesday, the CME's FedWatch tool had a given 92pc probability that the Fed would raise rates by a quarter point, up from 33pc odds a month earlier. The latest move followed rate cuts of 75 basis points over the last three FOMC meetings of 2025, as the Fed continued to normalize rates from two-decade highs reached in the aftermath to the post-Covid-19 runup in inflation. But mounting policy uncertainty unleashed by Trump's tariff wars, a crackdown on immigrants and erratic spending policies had prompted the Fed to remain on hold throughout 2026 until Wednesday's decision. Over that period, Trump repeatedly attacked then-Fed chair Jerome Powell for resisting pressures to lower rates. Powell stepped down as planned in May, and was replaced by Warsh, a former banker and Fed governor who had been viewed as a critic of Fed rate policy as well as an inflation hawk. Wednesday's FOMC decision is the first rate change since Warsh took office. Financial markets have grown increasingly skittish this year. The yield on the US 10-year Treasury note tipped past 5pc on Wednesday for a third day, the highest intraday levels since 2007. The higher rates increase borrowing costs for consumers and businesses. Bond yields are surging on rising debt levels amid increases in spending on defense and artificial intelligence and concerns the energy crisis unleashed by the Mideast Gulf war will deepen. The consumer price index rose at a 3.4pc annual rate in August, the same as July. But gasoline prices rose by an annual 27.4pc in August, up from 24.6pc, while fuel oil prices rose by 52pc. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

TDK backs recycler reviving Ascend's Li plant

16/09/26

TDK backs recycler reviving Ascend's Li plant

Houston, 16 September (Argus) — Japanese electronics firm TDK has invested in US battery recycler R3 Lithium, which is restarting a lithium carbonate recovery plant in Covington, Georgia, that it bought out of the Ascend Elements bankruptcy. TDK's corporate venture arm, TDK Ventures, joined R3's oversubscribed $15mn Series A round alongside Integral GlobalTech Partners and Axial Partners. Tokyo-based TDK makes passive components, sensors and lithium-ion batteries. TDK Ventures had backed the plant's recovery technology during its earlier development at Battery Resourcers, which later became Ascend Elements. Massachusetts-based Ascend filed for Chapter 11 protection in a Texas court on 9 April, citing cost overruns and contractor disputes at its unfinished Apex 1 plant in Kentucky. The US government had also cancelled a $164mn grant for that project. The court approved the sale of Covington to R3 in June for $3mn in cash, with R3 assuming the site's liabilities. Former Ascend chief executive Linh Austin now leads R3. The 154,000ft² Covington facility has 30,000 metric tonne (t)/yr of shredding capacity and a 2,500 t/yr lithium carbonate recovery line, with space to double capacity. It recovers lithium carbonate from recycled black mass, with concentrated metal oxides sold as a by-product. Ascend demonstrated production there in 2025, and R3 is targeting continuous commercial production in 2027. R3 holds long-term offtake agreements with counterparties, including Trafigura, which it said could be worth about $1bn over their full terms. By Carol Luk Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more