PT Hillcon Tbk (HILL) is allocating funds amounting to IDR 600 billion for capital expenditure (capex) in 2024. However, the capex budget for this year could be higher in line with the increase in contracts.

Director of Hillcon, Jaya Angdika, stated that currently, HILL has two potential projects that will be worked on. However, he is still reluctant to disclose the size of the contracts being targeted.

"At present, we have two substantial pipelines, so it will exceed Rp 600 billion. But this still depends on the contracts we secure in those pipelines," he explained in a presentation on Wednesday (8/5).

For illustration, Hillcon is currently working on the Sebuku Tanjung Coal Group coal mining project in South Kalimantan. Additionally, the nickel mining project of PT Arga Morini Indah in Southeast Sulawesi.

This mining and contracting service issuer is also working on the nickel mining project of PT Rohul Energi Indonesia in Southeast Sulawesi and the PT Weda Bay Nickel mine in North Maluku.

Operationally, Jaya projects that coal production could increase by 10% and nickel could grow by 15%–20% this year. HILL considers the potential nickel mining market to be still promising and extensive.

Hillcon President Director Hersan Qiu added that with the various uses of nickel in various industries and the increasing demand for nickel, the potential for mining remains very significant in the future.

He projects that nickel consumption will be quite promising because nickel ore is highly needed as an essential component in the production of stainless steel and electric vehicle batteries.

"So with the increasing demand for nickel, the projects that Hillcon will handle will continue to grow," said Hersan Qiu.