JAKARTA – A surge in sulphur prices to their highest level in several years is beginning to squeeze production costs for the global mining industry, particularly nickel in Indonesia and copper in Africa.

According to Mining, the increase has been driven by supply disruptions caused by the Iran conflict, as the Middle East accounts for around 24 percent of global sulphur production as a by?product of oil and gas processing.

In Indonesia, sulphur prices have risen by around 20 percent to roughly US$600 per tonne. For supplies to high pressure acid leaching (HPAL) nickel smelters, prices have even exceeded US$700 per tonne. In southern Africa, prices have jumped 37 percent to US$715 per tonne, while small packaged supplies from port warehouses have surged as much as 66 percent to US$1,000 per tonne.

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Data shows sulphur prices are now at their highest level in at least five years. The increase is adding cost pressure to mineral processing, as sulphuric acid is a key component in metal extraction and refining.

If high prices persist, mining project expansions could be delayed and copper supply growth in Africa’s copperbelt may slow. On the other hand, the situation could create opportunities for copper smelters in China to improve margins, as rising prices for downstream products may offset weak treatment and refining charges. (DH/LM)