02 August 2023
Jakarta, August 2, 2023 - Trimegah Bangun Persada Tbk and its subsidiaries (Stock code: NCKL), an integrated nickel mining and processing company with upstream and downstream capabilities on Obi Island, South Halmahera, North Maluku, recorded sales of Rp 10.2 trillion in the first semester of 2023, an increase of 89% compared to Rp 5.4 trillion in the first semester of 2022.
The significant increase in sales is the result of the company's efforts to continuously expand and improve the production capacity of both the High-Pressure Acid Leach (HPAL) and Rotary Kiln Electric Furnace (RKEF) production lines. From the HPAL production line, the company recorded an increase in sales of Mixed Hydroxide Precipitate (MHP) from 19,588 metric tons of nickel content in the first half of 2022 to 23,969 metric tons of nickel content in the first half of 2023, representing a growth of 22%. The company also achieved an increase in ferronickel sales volume to 37,756 tons of nickel content in the first half of 2023, a significant increase of 171% compared to 13,910 tons of nickel content in the first half of 2022.
The company has also made history as the first and largest (in terms of production capacity) company in Indonesia and the world to successfully process MHP into other derivative products such as Nickel Sulfate and Cobalt Sulfate. These are essential raw materials for the production of ternary precursors used in the manufacture of nickel-based electric vehicle batteries. The nickel sulfate plant is in commercial production with a capacity of 240,000 tons of nickel sulfate per year, while the cobalt sulfate plant is in production testing. The Company achieved its first export of 5,800 tons of nickel sulfate at the end of the first half of 2023.
Despite the global decline in nickel prices since the end of 2022, the Company achieved a gross profit of Rp 3.5 trillion, an increase of 17% compared to Rp 3.0 trillion in the first half of 2022. Operating profit also increased by 13% to Rp 3.07 trillion from Rp 2.71 trillion in the first half of 2022. Meanwhile, net profit increased by 2% to Rp 3.21 trillion from Rp 3.16 trillion in the first half of 2022.
In the second quarter of 2023, the company recorded a net profit attributable to the parent company of Rp 1.38 trillion, an increase from Rp 1.37 trillion in the first quarter of 2023. In the first half of 2023, the company recorded a net profit attributable to the parent entity of Rp 2.75 trillion.
In terms of production, the company targets to produce 50,000 - 52,000 tons of nickel content for MHP products and 90,000 tons of nickel content for ferronickel products in 2023. The company also plans to convert some of the MHP products to nickel sulfate and cobalt sulfate in 2023.
With the growing global electric vehicle industry and the government's plan to become one of the world's largest electric vehicle battery producers, the company is committed to continue investing and building production facilities that can increase the volume and value of its products in the spirit of "From Obi for Indonesia".
As a result, the company is in the process of further expansion through the construction of a second High-Pressure Acid Leach (HPAL) refining facility through its subsidiary PT Obi Nickel Cobalt (ONC). The new facility is expected to have 3 production lines with a production capacity of 65,000 metric tons MHP per year and is expected to be operating in the first half of 2024.
The company also plans to further expand the Rotary Kiln Electric Furnace (RKEF) production line through its affiliate PT Karunia Permai Sentosa (KPS). This expansion is targeted to have 12 production lines with a production capacity of 185,000 tons of nickel content (ferronickel) per year and is expected to be phased in from the second half of 2025. The company is also planning a stainless steel project where part of the ferronickel produced by the company and its subsidiary in the RKEF sector will be processed into stainless steel products.
In terms of sustainability, the company will continue to be committed to sustainable integration into its business processes, local community involvement and development, and environmental concerns. The company will also continue to engage in consultations and discussions with stakeholders and customers regarding the implementation of ESG (Environmental, Social, and Governance) standards and certifications within the industry.