25 July 2023
Jakarta, CNBC Indonesia - Trimegah Bangun Persada (NCKL), a nickel mining company and subsidiary of Harita Group, will soon have two new smelters that will be operational within next two years.
Previously, the company has operated several nickel plants to increase the value of nickel ore, including the first nickel sulfate plant in Indonesia, which is also the largest in the world in product
President Director of PT Trimegah Bangun Persada (NCKL), Roy Arman Arfandy, revealed that the new nickel plant will operate on Obi Island.
"We have good operations there. We are strategically located on Obi Island and also [have] an integrated business there," Roy said at the "Nickel Conference 2023" event. CNBC Indonesia in Jakarta, Tuesday (07/25/2023).
Roy also revealed that they are a major contributor to the presence of mining activities on Obi Island and are the largest nickel producer on the island.
He further disclosed that the two new projects consist of the company's second High-Pressure Acid Leach (HPAL) nickel plant and the company's third Rotary Kiln Electric Furnace (RKEF) nickel plant.
The second HPAL project is operated by PT Obi Nickel Cobalt (ONC) and has a total capacity of 65 thousand metric tons of metal per year. The resulting product is Mixed Hydroxide Precipitate (MHP), a high-grade class 1 nickel that can be used in the construction of electric vehicle ecosystems.
The President Director of NCKL revealed that the company's second HPAL project began in 2022 and is expected to start commercial operations for the first time in the second quarter of next year.
Meanwhile, the company's third RKEF plant is being executed through PT Karunia Permai Sentosa (KPS), which is currently in its early stages but is expected to be operational by mid-2025.
The RKEF plant aims to achieve an annual production capacity of up to 185 thousand metric tons of Ferronickel (FeNi). Furthermore, Roy also disclosed that the RKEF plant will be integrated with a stainless steel plant in the future, although he did not reveal a specific timeline for the stainless steel plant.
The addition of these new plants is expected to serve as a driving force in strengthening the company's financial performance.
As of the end of the first quarter of 2023, NCKL recorded revenues of IDR 4.79 trillion with a net profit of IDR 1.37 trillion.
During the first trading session on Tuesday, July 25, NCKL shares opened higher by 2.78% at IDR 925 per share, with a market capitalization of IDR 58.37 trillion, making it one of the most valuable nickel companies listed on the Indonesia Stock Exchange.
Source: CNBC Indonesia