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Unfashionable sections of the mining industry are riding a wave of investor support as law changes in Indonesia stoke demand for nickel and bauxite exposure.

Australian nickel stocks such as Western Areas, Sirius Resources and Panoramic Resources enjoyed healthy share price rises on Monday as the nickel price rose to two-week highs, while Alumina Ltd also rose on expectations that demand will increase for Australian bauxite.

Even BHP Billiton, which is keen to dispose of its nickel and bauxite assets, enjoyed a share price boost, and some believe the Indonesian ban could help the company sell its struggling nickel assets.

The ban that Indonesia implemented on Sunday is designed to stop exports of unprocessed ore in an attempt to force companies to build refineries and smelters on Indonesian soil.

While some exclusions have been granted for copper and gold miners and others who have promised to build downstream operations, Indonesia’s export of nickel and bauxite to China is expected to be significantly hampered.

Read more at: http://www.smh.com.au/business/boost-for-nickel-stocks-as-indonesia-tightens-supply-20140113-30qsd.html#ixzz2qKk4orFv