Indonesia has ordered Weda Bay Nickel, the world’s biggest nickel mine, to cut output in a move intended to support global nickel prices.
France’s Eramet, part of the joint venture that operates Weda Bay Nickel, confirmed that Indonesian authorities gave the mine a quota of 12 million tonnes of ore production in 2026, down from 42 million tonnes in 2025.
Weda Bay Nickel acknowledged the quota policy implemented by Indonesia as necessary for the sustainable management of Indonesia’s nickel industry and market balance, which has contributed to the increase in nickel ore prices since the beginning of 2026.
Indonesia has moved to preserve nickel reserves and stabilise prices after its production rose to about 65 per cent of the world supply, triggering a two-year price slump.
In January, the Indonesian government began implementing a plan to reduce annual nickel ore production from around 330 million tonnes to approximately 250 million tonnes.
The decision has already impacted local nickel mining operations.
PT Vale Indonesia, a partnership between Brazil’s Vale SA and the Indonesian government, ceased nickel operations in January after authorities failed to approve the company’s 2026 production plan.
Weda Bay Nickel said it plans to accede to the adjusted quota, but it intends to apply as early as possible for a revision to the production quota to a higher volume.
The mine is jointly-owned by Tsingshan Holding Group, Eramet and Aneka Tambang.
