Indonesia has increased its share of global refined nickel supply to 62%, driven by its vast reserves, competitive production costs, and economies of scale, according to a new report by Benchmark Mineral Intelligence.
The firm’s latest Nickel Cost Model revealed that at the average London Metal Exchange (LME) price of $15,380 per tonne in the first half of 2025, 22% of global nickel producers were operating at a loss.
This includes several Indonesian rotary kiln-electric furnace (RKEF) and nickel matte operations.
Benchmark noted wide variations in nickel production costs depending on the processing route. Mixed Hydroxide Precipitate (MHP) producers, particularly those based in Indonesia, are seeing the strongest margins and the lowest C1 cash costs in the industry. In contrast, non-integrated smelters and matte producers are facing heightened cost pressures.
C1 cash costs represent the direct expenses involved in mining and processing nickel ore, excluding capital expenditures, royalties, and other indirect costs.