Nickel Industries responds to ASX price query as shares sink 20%

The news: Nickel Industries has responded to an ASX price query after the miner's share price slumped by more than 20% in morning trade.

The numbers: Nickel Industries shares were down 20.2% to 60.3 cents at 1pm AEDT, making it the worst performing ASX 200 company.

The context: The miner said the steep decline may been caused by Indonesian coal producer Harum Energy selling 178.5 million shares, or 4.2% of Nickel Industries' total shares, in a block trade at 69 cents per share.

The company also noted that the Indonesian government has released a proposal for public consultation that would increase royalties for operators across multiple commodities, including nickel. The current royalty rate on nickel ore is 10%, with the proposed royalty range for public consultation at 14% to 19%, depending on the nickel price at the time.