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Sulphur 423 Mar-Apr 2026

23 March 2026

Indonesian nickel shutdown to cut sulphur/acid demand

INDONESIA

Indonesian nickel shutdown to cut sulphur/acid demand

Four Chinese-operated nickel plants at the Indonesian Morowali Industrial Park have temporarily ceased operations following a fatal landslide in February, in a development that will significantly reduce regional demand for sulphur and sulphuric acid. The shutdowns affect facilities run by China’s GEM Co. and its partners, which together account for 30% of Indonesia’s high-pressure acid leaching (HPAL) capacity. The move comes amid heightened regulatory scrutiny. The largest of the four plants, PT QMB New Energy Materials, could remain offline for up to three months.

The production halt will lead to a sharp reduction in the consumption of sulphuric acid, a key reagent in the HPAL process. PT QMB New Energy Materials has an annual acid requirement of 1.5 million t/a. The other three affected plants, PT ESG New Energy Material, PT Meiming New Energy Material, and PT Green Eco Nickel, consume 653,000 t/a, 620,000 t/a, and 530,000 t/a acid, respectively. Collectively, this is expected to remove around 260,000 tonnes of monthly acid demand from the market. Consequently, this will reduce upstream sulphur demand by an estimated 50,000 tonnes per month for the duration of the shutdown.

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Coromandel starts trial operations at new acid plants

Coromandel International says that it has started trial production at its new sulphuric acid and phosphoric acid plants in Kakinada, Andhra Pradesh. The company says that this marks a crucial step towards transforming the unit into a fully integrated facility, significantly enhancing production capacity and diminishing reliance on imported raw materials for fertiliser manufacturing. The company is now focusing on a phased ramp-up. The new plants have of 2,000 t/d of sulphuric acid and 650 t/d of phosphoric acid, respectively. The integration of these acid plants is strategic, aligning with Coromandel's objective to strengthen backward integration in its fertiliser manufacturing value chain. By producing key intermediates in-house, the company aims to secure stable supplies, enhance cost efficiencies, and achieve greater self-sufficiency, thereby reducing dependence on imported raw materials. The project aims to replace over 50% of the Kakinada plant's imported acid requirements and mirror the integration levels seen at its Vizag and Ennore facilities.

NCOC seeks arbitration over sulphur fine

The North Caspian Operating Company (NCOC), which operates the huge Kashagan oil field in Kazakhstan, has said that it is seeking international arbitration to resolve its ongoing dispute with the government of Kazakhstan. Kazakhstan has imposed a swingeing $4.6 billion fine for alleged violations of sulphur storage regulations at the NCOC site. In December, a special administrative court in Astana turned down an appeal by NCOC, although it also granted leave to appeal in a higher court. NCOC, a partnership between Shell, Eni, TotalEnergies, ExxonMobil, China National Petroleum Corporation, Inpex and Kazakh state oil and gas company KazMunayGaz, continues to maintain that its sulphur handling operations have been conducted in compliance with Kazakhstan’s laws and that it had the required permits in place.