Before it can be processed into Mixed Hydroxide Precipitate or MHP, limonite nickel ore from the SCM Mine must first be processed at an FPP. At the Feed Preparation Plant, the limonite ore is prepared into a slurry, a mixture of ore and water, before being transported through a closed pipeline network to the HPAL plant.
The FPP is an integral part of the integrated business process of PT Merdeka Battery Materials Tbk (IDX: MBMA), with PT Sulawesi Cahaya Mineral (SCM), a subsidiary of MBMA, operating the SCM Mine. Upstream, the SCM Mine produces two types of nickel ore: saprolite and limonite. Saprolite, which has a higher nickel grade, is processed at RKEF (Rotary Kiln Electric Furnace) smelters operated by the MBMA Group. Limonite, meanwhile, is less suitable for processing using pyrometallurgical technologies such as RKEF and can instead be processed through High Pressure Acid Leach, or HPAL, to produce MHP, a mixed hydroxide compound of nickel and cobalt. MHP is an intermediate product that can be further processed into materials used to produce battery cathode precursors.
MBMA began developing the HPAL processing route after the RKEF route became part of its operations. Concrete partnerships to develop HPAL began to take shape in 2023. A year later, HPAL ESG began operations, followed by HPAL Meiming in the first quarter of 2026. In addition, MBMA began construction of the 90 ktpa SLNC HPAL plant in January 2025. As production of limonite at the SCM Mine increased from 10.1 million wmt in 2024 to 14.7 million wmt in 2025, the need for a more integrated ore delivery system to support HPAL facilities also grew.
HPAL ESG and HPAL Meiming, located in the Indonesia Morowali Industrial Park (IMIP), began operations before the new FPP at the SCM Mine area was completed. During this transition period, limonite supply to the two HPAL plants was still supported by the FPP already available at IMIP. This meant that limonite ore had to be transported by truck every day over a distance of 46 kilometers, crossing provincial boundaries from the SCM Mine in Konawe, Southeast Sulawesi, to the FPP facility at IMIP in Morowali, Central Sulawesi. This situation prompted MBMA to build an FPP at the SCM Mine area, enabling limonite to be delivered to HPAL facilities through a more integrated system.
Construction of the FPP at the SCM Mine area and its slurry pipeline network began in 2024. By the end of 2025, the FPP and pipeline network were operational, supporting limonite supply to HPAL ESG and HPAL Meiming. Under this system, limonite no longer needs to be transported entirely by road from the mine to the FPP at IMIP. Instead, it can be prepared into slurry at the mine site and transported through the pipeline network to the processing facilities.
The same approach was applied in the development of HPAL SLNC. Construction of the SLNC FPP and its supporting infrastructure began in 2024, while construction of the SLNC HPAL plant began in January 2025. The SLNC FPP began operations on September 24, 2026, marked by an Ore Feeding Ceremony. Two days later, on September 26, 2026, the first commissioning of one HPAL SLNC autoclave unit was conducted. This sequence demonstrates the connection between the FPP and the HPAL plant: the FPP prepares and supplies limonite as slurry, while the HPAL plant further processes it into MHP. The SLNC HPAL plant is progressing toward full operation through several commissioning stages, with production ramping up gradually toward its design capacity.
The operation of the SLNC FPP marks an important milestone in the collaboration between the Merdeka Group and Huayou Group. SLNC, short for PT Sulawesi Nickel Cobalt, is a joint venture involving MBMA through PT Merdeka Energi Baru and a Huayou Group partner. Under the partnership, SLNC develops and operates an HPAL plant at IMIP, while its ore supply is sourced from the SCM Mine under a commercial agreement.
For SCM, the SLNC FPP enables limonite ore to be prepared at the mine site before being transported as slurry through the pipeline network to the SLNC HPAL plant at IMIP. For SLNC, the facility ensures that its feedstock supply is directly connected to the ore source at the SCM Mine.
“The start of ore feeding is the result of collaboration and support from many parties. We appreciate the teams from SCM, SLNC, Huayou Group, and the Merdeka Group for supporting the completion of this facility while maintaining a strong focus on safety, enabling it to enter the operational stage successfully,” said Ren Jiang Ning, Assistant Manager of PT SLNC.
“The facility helps ensure a more efficient and coordinated ore supply,” said Yosef Setiyawan, Deputy General Manager Operations of PT SCM. “This achievement also reflects the commitment of all teams to maintaining safety throughout the construction phase and as the facility entered operation.”
As operations begin, SCM and SLNC will strengthen coordination in ore delivery planning, facility operations, and maintenance to ensure smooth ore feeding. This coordination will be important to ensure that greater efficiency does not compromise operational safety and reliability.
The operation of the SLNC FPP strengthens SCM’s limonite preparation infrastructure while supporting the integration of the nickel value chain, from mining to processing. The facility also forms an important part of the limonite supply system connecting the SCM Mine with the development of SLNC’s HPAL capacity.
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