Indonesia’s Largest Nickel Factory: PT Halmahera Persada Lygend & Harita Group Ownership

Jakarta, CNBC Indonesia – Indonesia is a country that has the largest nickel factory in the world. The factory focuses on processing nickel sulfate, which is the main ingredient in the cathode precursor for electric vehicle batteries.

The world’s largest nickel sulfate factory is located on Obi Island, South Halmahera Regency, North Maluku.

The title as the world’s largest nickel factory cannot be separated from the production capacity of nickel sulfate there, which reaches up to 240 thousand tons per year. This factory was just inaugurated by the Coordinating Ministry for Maritime Affairs and Investment on 31 May 2023.

The first nickel sulfate plant in Indonesia is operated by PT Halmahera Persada Lygend, an affiliate of PT Trimegah Bangun Persada Tbk (NCKL), the Harita Nickel group.

Quoting the company’s website, PT Halmahera Persada Lygend is owned by Harita Nickel through PT Trimegah Bangun Persada Tbk (NCKL) of 45.1%, Lygend Resources Technology Co. Ltd by 36.9%, and Kang Xuan Pte Ltd by 18%.

The main director of PT HPL is held by Parasian Simanungkalit and the position of director is held by six people, including Tonny Gultom, H.Ghufron, Ge Kaicai, Yu Hai, Zhang Bao Dong, and Hu Hong Gen.

While the Main Commissioner is held by Cai Jiangyong and the Commissioners are held by Lim Gunawan Hariyanto and Jiang Xinfang.

Harita Nickel is part of the Harita Group which operates integrated mining and downstream operations on Obi Island, South Halmahera, North Maluku.

In addition to having a Mining Business License (IUP), the company has owned a saprolite nickel smelter since 2016 and since 2021 also has a limonite nickel factory in the same operational area.

The two facilities absorb nickel mining products from PT Trimegah Bangun Persada Tbk (NKCL) and Gane Permai Sentosa (GPS).

Through Halmahera Persada Lygend, Harita Nickel became a pioneer in Indonesia in processing and refining nickel limonite (low grade) using High Pressure Acid Leach (HPAL) technology. This technology is capable of processing limonite nickel which has not been utilized into a product of strategic value, namely Mixed Hydroxide Precipitate (MHP).

With the next process stage which is also being developed by Harita Nickel, MHP will be further processed into Nickel Sulfate (NiSO4) and Cobalt Sulfate (CoSO4), which are raw materials for electric vehicle batteries.

While Lygend Resources Technology Co. Ltd. is a company in the global nickel supply chain sector that was established in January 2009 in the East China Sea, Zhejiang, China.

Starting from selling nickel ore and ferronickel, now Lygend is increasingly expansive to produce integrated nickel products from upstream to downstream. Apart from China and Indonesia, the company also has business units in the Philippines and other Southeast Asian countries.

(hsy/hsy)