The Silicon Review ^Asia

The prices of nickel ore is going to be regulated and new rules will be laid down pertaining to its trade in Indonesia according to a statement from the Ministry of Energy and Mineral Resources. This decision has been affected by the fact that many miners have lodged in complaints that their products are being sold to smelting companies at prices that are too low. The new regulation will bring in a lower benchmark that looks out for the welfare of the miners.

“A monthly metal benchmark price set by the ministry will be used as floor price for nickel ore transactions under the new rules.The ministry will allow for some buffer below the floor price, but it has not decided yet how far below the floor can the selling price go.We are optimistic we will conclude it by the end of March,” said YunusSaefulhak, the ministry’s director of minerals.

Indonesia is one of the world’s leading sources of the ore. The country had earlier aimed to stop the trading of the unprocessed metal and instead processing them inside the country to make batteries and such. This new floor price will aid the country of fulfilling its mission of having a fully integrated nickel industry.