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View all search resultsIndonesia's HPAL plants scramble as Iran war threatens sulfur supply
A prolonged disruption of maritime traffic in the Middle East could paralyze high-pressure acid leaching (HPAL) operations to produce mixed hydroxide precipitate (MHP) in Indonesia, an industry group has warned, given the country’s heavy reliance on sulfur shipments from the region.
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A worker in protective gear uses a tool to scoop molten metal on Sept. 16, 2025 at Harita Nickel’s smelting facility on Obi Island in South Halmahera, North Maluku. (AFP/Daeng Mansur)
T
he disruption of maritime traffic in the Middle East poses a threat to mineral processing in Indonesia, which relies heavily on sulfur shipments from the region for its high-pressure acid leaching (HPAL) refineries to produce mixed hydroxide precipitate (MHP).
Last year, more than 75 percent of Indonesia’s sulfur imports were shipped in from the Middle East, according to the Indonesian Nickel Industry Forum (FINI), with the vast majority of that supply transiting through the Strait of Hormuz, where navigation has almost come to a standstill.
FINI chairman Arif Perdana Kusumah warned that a prolonged disruption of the strategic waterway could paralyze operations at domestic HPAL processing facilities, which produce MHP, the key intermediate product to manufacture battery-grade nickel for electric vehicles.
"This highly concentrated supply, following the closure of the Strait of Hormuz, will disrupt and even cut off the main source of raw materials for HPAL refineries in Indonesia," Arif told The Jakarta Post on Tuesday.
Read also: Indonesia calls for probe into Hormuz tugboat explosion
Indonesia hosts around 10 operating MHP projects with a combined designed output capacity of about 440,000 tonnes of contained nickel per year, according to a report published by commodity price intelligence provider Argus last December.
Most projects are owned by Chinese giants Ningbo Lygend, Green Eco-Manufacture (GEM) and Huayou, in collaboration with local producers Merdeka, Harita Nickel and PT Vale Indonesia.
