Category: Industrial

The Philippine government is looking to follow Indonesia’s success in attracting downstream investment by banning the export of nickel ore. The Philippine Congress could ratify a bill banning raw mineral exports as early as June. The ban would come into force five years after approval to give miners time to build downstream processing plants. This development could potentially lead to higher nickel prices in the medium term if there is a delay to building domestic capacity and the Indonesian government becomes serious about restraining ore availability.

The Middle East remains the world’s largest regional exporter of sulphur, with additional capacity continuing to come from both refineries and particularly sour gas processing.

Kazakh state gas company QazaqGaz says that work is progressing well and on schedule on the 1 billion m3 expansion project at the Kashagan Gas Processing Plant. A recent site report says that seven absorption columns have been installed at the sulphur treatment unit (each weighing between 50-170 tonnes); three sections of the smokestack have been installed at the sulphur recovery block, along with storage tanks and pumps for the heat carrier, instrumentation air, and nitrogen supply units; and a total of 2,177 t of process equipment has been installed. Welding works for tank assembly are ongoing, and over 12,000 meters of underground piping have been laid, and more than 38,000 cubic meters of concrete have been poured.

President Yoweri Kaguta Museveni of Uganda has overseen the signing of signed an implementation agreement for the Uganda Refinery between the Ministry of Energy and Mineral Development, the Uganda National Oil Company (UNOC) and joint venture partner Alpha MBM Investments. Alpha MBM is a UAE-based company led by Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, a member of the Dubai Royal Family. The agreement paves way for the design, construction and operation of the 60,000 bbl/d refinery to be undertaken at Kabaale. Construction is expected to take three years, with UNOC and Alpha MBM Investments as the project partners. The refinery, which will be East Africa’s first major crude processing plant, aims to reduce Uganda’s dependency on imported petroleum products and is expected to meet the local and regional demand for petroleum products.

• Global sulphur prices are expected to stay relatively stable as purchases in Asia slow down due to the closing of the purchasing window for the Chinese spring fertilizer application season.

CRU’s World Copper Conference was run at the start of April 2025 in Santiago, Chile, with the industry facing a crossroads. The Americas account for nearly half of the world’s mined copper, with South America producing 38% and North America contributing 10%. However, North American copper mines face cash costs 51% above the global average and 79% higher than those of their South American neighbours, positioning the region as one of the most expensive copper-producing areas globally. These high costs create a significant challenge, especially as securing a reliable copper supply has emerged as a geopolitical priority.

Indonesia is increasing the royalty rates that the government takes on metals mined within the country. The Indonesian government has proposed a tiered royalty structure on nickel ore sales, ranging between 14–19%, depending on the prevailing nickel price. This would replace the current flat rate of 10%. A 14% rate would apply when nickel prices are below $18,000 /t, increasing progressively to 19% for LME prices above $31,000 /t. The royalty is calculated based on revenue from nickel ore sales.

Due to an increasingly challenging market, Nyrstar will indefinitely lower production at its Hobart zinc smelter in Tasmania by around 25%. The plant’s zinc capacity is 280,000 t/a. “This decision follows a thorough and extensive review and is a direct response to deteriorating market conditions and financial losses being sustained by Nyrstar Australia,” the Trafiguraowned company said. “Nyrstar’s Australian assets continue to face significant financial challenges due to several external factors including worsening conditions in raw material markets, negative treatment charges and increased costs.”

Two dam failures at the Morowali industrial park in Indonesia have killed three people. On March 16, during heavy rains, the PT Huayue Nickel Cobalt tailings storage facility at the Morowali industrial park failed, and tailings flowed into the Bahadopi River. The breach flooded facilities at the industrial park and the village of Labota. Five days later another tailings dam inside the industrial park, owned by PT Qing Mei Bang (QMB) New Energy Materials, collapsed, killing three workers. The affected tailings facilities store acidic waste from high pressure acid leaching (HPAL). It is estimated that for every ton of nickel, HPAL processing generates 150-200 tons of tailings. The affected facilities use filtered tailings, where some of the water is removed from the tailings before they are placed the dam. However, heavy rains, landslips and seismic activity appear to have affected the stability of some of the dams.

• Continuing oversupply means that ammonia prices should continue to come under pressure moving into 2H April, though it remains to be seen just how much further values in Asia can decline before producers begin to shutter output.