The ASX-listed company said comments by the Indonesian investment minister pertaining to an export tax on nickel products with less than 70% nickel content were understood to have been made without consultation with the key ministry that would need to be involved.

Further, any potential changes would entail a lengthy process including industry consultation.

Moreover, about 50% of Nickel Mines' production is sold "in country", and the company also has an MoU for some its processing to be changed so as to produce a nickel matte grading greater than 75% nickel.

Nickel Mines also claimed the comments by the Indonesian investment minister had been made "in the context of promoting further downstream development and investment in the production of key nickel products for the manufacture of electric vehicle batteries given the commencement of construction of a US$1.1 billion plant by South Korea's LG Energy Solution and Hyundai Motor Group".

Shares in Nickel Mines were down 5% A$1.04 in early trade, capitalising the company at about $2.6 billion.

The stock was trading at levels around 70c 12 months ago.