Indonesia seized part of a major nickel mine partly owned by China’s Tsingshan Holding Group Co., highlighting potential risks to ore output from the world’s largest supplier. A government task force took control of roughly 148 hectares of PT Weda Bay Nickel, the world’s biggest battery-metal mine, over an alleged permit violation. Shareholder France’s Eramet SA said it does not expect an immediate impact on operations.

The seizure underscores ongoing supply challenges from Indonesia, which produces more than half of the world’s nickel. President Prabowo Subianto announced plans to crack down on illegal mining, which could disrupt ore flows to local processors.

Indonesian smelters faced a tight ore market throughout the year due to heavy rainfall and limited issuance of government mining quotas, contributing to ongoing supply constraints.