Inauguration of largest nickel sulfate production operation in Indonesia by Harita Nickel’s PT Halmahera Persada Lygend

Jakarta, CNBC Indonesia – Harita Nickel through its business unit PT Halmahera Persada Lygend (PT HPL) which is a business affiliate company of PT Trimegah Bangun Persada Tbk. (NCKL) has inaugurated the first nickel sulfate production operation in Indonesia and the largest in the world.

Nickel sulfate is the main ingredient in the cathode precursor for electric vehicle batteries. The inauguration of the nickel sulfate production operation with a capacity of 240 thousand tons per year was carried out in the Harita Nickel operational area on Obi Island, South Halmahera Regency, North Maluku Province, Wednesday (31/5).

Director of PT. Halmahera Persada Lygend, Tonny H. Gultom said, Harita Nickel through PT HPL in collaboration with Lygend Resources Technology Co., Ltd, produced Mixed Hydroxide Precipitate (MHP) as a raw material for electric vehicle batteries.

The nickel sulfate factory, which is located on Obi Island, is claimed to be the first factory in Indonesia to produce it as well as being the largest in the world in terms of production capacity. The first export of nickel sulfate is planned to be carried out in June 2023.

“In terms of NiSO4 production capacity, the Company will continue to make improvements and increase its capacity to reach 240,000 metric tons/year with a nickel metal content of 54,000 tons/year and is targeted to be achieved by mid-Q2 of 2023,” Tonny said in a written statement, Thursday (1/1 6).

Tony said, on Obi Island which is rich in minerals, his party will build an integrated mining industry from upstream to downstream. Starting from mining in 2010 through PT Trimegah Bangun Persada Tbk, Harita Nickel has done what was mandated by the government in the spirit of downstreaming.

Since 2015, Harita Nickel has carried out downstream processing through high grade nickel (saprolite) processing through PT Megah Surya Pertiwi with 4 ferronickel production lines.

“In 2018 we began to build a downstream limonite processing for low-grade nickel, which has been treated as over-burden (waste rock) Mixed Hydroide Precipitate,” said Tonny.

The downstream industry officially operates in June 2021 through the affiliate PT Halmahera Persada Lygend. Furthermore, another Harita Nickel subsidiary, namely PT Halmahera Jaya Feronikel (PT HJF) in the first semester of 2023 has completed the construction of a ferronickel smelter with 8 production lines.

“This downstream spirit is integrated in the form of a business roadmap, which to this day proudly and gratefully, hand in hand with our partner from Lygend Resources Technology Co., Ltd, has managed to climb to a new level of achievement with the production of nickel sulfate,” he said. Tony.

Meanwhile, Deputy for Investment and Mining Coordination at the Coordinating Ministry for Maritime Affairs and Investment, Septian Hario Seto, said that what Harita Nickel produced was an extraordinary historic achievement.

“We are repeating history 2 years ago with the Coordinating Minister for Maritime Affairs and Fisheries inaugurating the first HPAL factory. This is something to be proud of, today we will inaugurate nickel sulfate, which is a product derived from nickel which can later be processed into precursors,” said Septian.

Septian also advised that good environmental management on Obi Island could be continued. In addition, contributions to the surrounding community as well as CSR programs and community assistance that are right on target are also to be maintained. “I think this will create harmony and harmony between the company and the community,” concluded Septian.

Meanwhile Zhang Bao Dong, Director of PT Halmahera Persada Lygend who is also a representative of Lygend Resources Technology Co., Ltd said, Lygend is very proud to be able to work with the Harita Group and produce an HPAL factory to its derivative, namely nickel sulfate.

“We have great hope that in the future Harita and Lygend will jointly build the downstream industry to provide a sustainable economic impact,” said Zhang.

Meanwhile, the Regent of South Halmahera, Usman Sidik, expressed his pride in being able to witness the success of PT HPL in producing the first nickel sulfate in Indonesia. “For us this is extraordinary and we certainly hope to have a positive impact on the people of South Halmahera,” he concluded.

(fsd/fsd)