The nickel smelting industry in Indonesia generates substantial volumes of slag waste, which pose significant environmental risks if not managed effectively. This study aims to develop a utilization model for nickel slag employing a dynamic systems approach over the 2025–2034 time horizon. The research utilizes secondary data obtained from smelter company reports, relevant literature, and scenario simulations constructed using Powersim. The simulation outcomes reveal a progressive increase in slag generation that is disproportionate to the available processing capacity, resulting in the accumulation of unmanaged nickel slag. Scenario-based optimization demonstrates that enhancing processing capacity by approximately 5%–10% annually can markedly reduce the volume of unmanaged slag. These results underscore the importance of adopting a circular economy framework to support sustainable nickel slag utilization within the smelting industry.
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