Indonesia's Ministry of Industry responds to Jiangsu Delong's Indonesian nickel crisis

PT GNI's nickel smelter is located in North Morowali and the company is currently in a transition phase due to the new management being more selective in raw material choices and production is expected to return to normal in April 2025.During this period, staff capacity will be upgraded and the company has explained the situation to the Ministry of Industry, promising no layoffs and no cuts in staff salaries. The company denies that the delay in payment to nickel ore suppliers and the disruption of production due to financial problems, the problem is rooted in the difference in opinion between the old and new management on the choice of raw material suppliers, the new management wants to ensure that the raw materials received meet the requirements. In addition, PT GNI will have access to a new source of funding following the change in management, with a financing agreement and mechanism expected to be finalized in July 2025, but there was no confirmation of whether the new funding or investor would mean that it would no longer be controlled by China's Jiangsu Delong. In late February, PT GNI said it was in a transitional phase, with operations ongoing and aiming to strengthen its structure to meet future industry challenges, following news that it had delayed payments to suppliers, was unable to obtain nickel ore and could shut down production, and that its operations had been impacted by a default on debt by its Chinese parent company, Jiangsu Delong.