en.Wedoany.com Reported - The boom in Indonesia's nickel industry is fading, and the Chinese technology that once drove this boom may soon trigger a similar overcapacity issue for battery metals in Africa. The influx of large volumes of Indonesian nickel is a primary cause of the sharp decline in this metal's price.

Over the past four years, nickel prices have fallen from $30,000 per ton to below $18,000 per ton, hitting a low of $14,200 at the end of last year. It was this price drop in mid-December that served as a wake-up call for the Indonesian government: the nickel industry it had actively encouraged was doing more harm than good.

In addition to clearing large tracts of forest through open-pit mining, the electricity demand from nickel smelters, mainly owned and operated by Chinese companies, has also led to significant coal combustion. Stricter government regulations, including reduced mining and export quotas and higher taxes, have led to the closure of some mines and reduced operations using the rotary kiln electric furnace (RKEF), the preferred nickel processing technology.

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