Clarification on RKEF permitting review

Nickel Industries Limited (ASX: $NIC) has issued a clarification regarding recent statements about the potential revocation of RKEF permits in Indonesia. The Company reached out to Mr Irwan Arif, a special advisor to the Ministry of Energy and Mineral Resources, who confirmed that the Ministry will not revoke existing RKEF permits but will stop issuing new permits for RKEFs consuming high-grade nickel ore.

Executive Commentary

We are pleased to provide this clarification to our shareholders and stakeholders that our RKEFs are not at any risk of revocation. The cessation of any further permits for RKEFs and NPI production has been mooted by the government for some time now and we see this as a positive as it will now cap NPI production to reduce the risk of oversupply.

Summary

Nickel Industries (ASX: $NIC) has clarified that its RKEF permits in Indonesia are not at risk of revocation. The Ministry of Energy and Mineral Resources will not revoke existing RKEF permits but will halt the issuance of new permits for RKEFs consuming high-grade nickel ore. Managing Director Justin Werner views this as a positive step to cap NPI production and reduce the risk of oversupply. Shareholders and stakeholders have been reassured by this clarification.