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NMDC Puts Nickel Expansion On Hold Amid Indonesia Supply Glut
M
Moneycontrol•19-10-2026, 17:17
NMDC Puts Nickel Expansion On Hold Amid Indonesia Supply Glut
- •India's state-run miner NMDC has paused its plans to enter the nickel sector due to global oversupply concerns driven largely by Indonesia.
- •Indonesia currently accounts for over 60 percent of global nickel output, impacting market pricing and surplus forecasts.
- •India classified nickel as a critical mineral in 2023 and relies heavily on imports for stainless steel and electric vehicle battery manufacturing.
- •NMDC previously sought discussions with Russia's Nornickel to secure supply and potential assets, though the meetings did not materialize.
- •Despite pausing nickel plans, NMDC continues to explore international critical mineral opportunities in Africa, Australia, and South America.
Key Questions Answered
NMDC has paused its nickel plans due to global oversupply concerns driven largely by Indonesia, which accounts for over 60% of the world's output.
India officially classified nickel as a critical mineral in 2023, while it relies mostly on imports and finalizes a policy to incentivize processing.
NMDC failed to secure a meeting with Russia's Nornickel despite repeated invitations, while Nornickel itself has faced voluntary partner restrictions, logistical issues, and payment difficulties.
