PT Merdeka Battery Materials Tbk (MBM) operates nickel mines and smelters, which are linked to the development of nickel industrial zones in Central and Southeast Sulawesi, Indonesia. Having launched its initial with the MBMA code in April 2023 and raising IDR 9.2 trillion in fresh funds, MBM is actively advancing its position to become a key provider of battery raw materials for the world’s electric vehicles, through integrated business assets.
MBM sources its raw materials, limonite and saprolite nickel ore, from the SCM Mine (Sulawesi Cahaya Mineral), a globally significant, cost-effective and high-quality nickel mining operation in Konawe, Southeast Sulawesi. Spanning over 21,100 hectares, the SCM Mine contains approximately 13.8 million tonnes of nickel (1.22% Ni content) and 1.0 million tonnes of cobalt (0.08% Co content).
In August 2023, the SCM Mine began supplying saprolite ore to three nickel smelters with Rotary Kiln Electric Furnace (RKEF) technology in Indonesia Morowali Industrial Park (IMIP), Central Sulawesi, to be processed into Nickel Pig Iron (NPI). The NPI is subsequently converted by PT Huaneng Metal Industry (HNMI), a nickel converter plant acquired by MBM in May 2023 with a 60% ownership stake. HNMI converts NPI to nickel matte.
Another product of the SCM Mine, limonite ore, is set to be processed at two HPAL (High-Pressure Acid Leach) plants. These processing plants are being built to be operational in 2025 at the Indonesia Konawe Industrial Park (IKIP), a sprawling 3,500-hectare zone dedicated to battery raw material production. This park is a collaborative effort involving various business partners and will be established within the SCM Mine’s concession area.
In the third quarter of 2023, MBM signed an agreement with GEM to develop an HPAL plant located within IMIP, which will also process limonite ore from the SCM Mine.
Furthermore, MBM holds an 80 percent ownership share in PT Merdeka Tsingshan Indonesia (MTI) which operated the AIM (Acid, Iron, Metal) Project. This project is a strategic asset of PT Merdeka Copper Gold Tbk, MBM’s parent company. The AIM project, located at IMIP, is designed to process waste ore from the Wetar Copper Mine into sulfuric acid, saturated steam, iron ore pellets, copper sponge, lead-zinc hydroxide, dore gold and silver.
In September 2023, the AIM Project received its first shipment of pyrite ore from the Wetar Copper Mine which will be processed when it commences operations in early 2024.