APNI talks about BHP's investment opportunities in Indonesia
Time:Wed, 07 Aug 2024 20:18:41 +0800
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According to Indonesia Nickel Miners Asociation (APNI)'s Secretary General Meidy Katrin Lengkey speaking at International Battery Summit 2024 in Jakarta, after Australian multinational mining company BHP Group closed its nickel mining business in Australia, the company has the opportunity to invest in Indonesia.
However, the final decision to invest in Indonesia is still uncertain, with consideration focusing on two main reasons. First, the cost of raw materials. BHP's sulfide minerals in Australia are more expensive to produce than Indonesia's laterite nickel mines. If the company starts investing in Indonesia, it can significantly reduce costs to increase its competitiveness.
Second, BHP already has downstream infrastructure for processing nickel matte. With sufficient government incentives and facilities, Indonesia is the most suitable place for the company to set up a production base.
APNI hopes that if BHP enters Indonesia, it will encourage other large investors except China to enter Indonesia, reduce one country’s investment dominance, creating healthy competition in nickel mining.
