JAKARTA - PT PAM Mineral Tbk (NICL) is optimistic that nickel prices will increase in 2025.

Ruddy Tjanaka, President Director of NICL, said that several global factors will be positive catalysts that encourage a surge in nickel prices next year.

‘One of the main triggers is the closure of nickel mines in countries with high production costs, such as Australia, the Philippines, and some countries in Europe. This reduction in supply will have an impact on the increase in nickel prices globally,’ said Ruddy in an information disclosure, Wednesday (26/3).

In addition, nickel demand is expected to increase in line with the growth of the electric vehicle and stainless steel industries. This situation benefits Indonesia as the world's largest nickel producer, especially with the plans of several countries to develop the downstream nickel industry in the country.

‘With the increasing need for nickel for electric vehicle batteries, we see a great opportunity to maintain business growth,’ he said.

In recent years, nickel prices have fluctuated quite sharply. In 2022, nickel prices peaked at US$30,048 per tonne, before falling dramatically by 44.75% in 2023 to US$16,603 per tonne.

The downward trend continued in 2024, with prices falling 7.68% to US$15,328 per tonne. However, with reduced supply and increased demand, NICL believes this trend will reverse in 2025.

In line with this optimism, NICL has received approval for its 2024-2026 Work Plan and Budget (RKAB), with a sales volume target of 7 million WMT.

The Company has also succeeded in improving efficiency and increasing production volume amid market challenges. By 2024, NICL's sales volume increased from 1.84 million tonnes in 2023 to 2.30 million tonnes.

Currently, NICL manages Mining Business Licences (IUP) in two main locations, namely 198 hectares in Laroenai Village, Central Sulawesi, and 576 hectares in Lameruru Village, Southeast Sulawesi, which are managed through its subsidiary PT Indrabakti Mustika (IBM).

According to IDNFinancials.com data, NICL recorded revenue growth of IDR 1.44 trillion, an increase of 26.37% year-on-year (yoy) compared to IDR 1.14 trillion in 2023. Then, net profit also jumped 1,081%, from IDR 318.04 billion in 2024. (DK/LM)