MBMA Increases Nickel Ore Production and Advances Strategic Projects in H1 2025
Sun 28 Sep 2025, 11:18 AM
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PT Merdeka Battery Materials Tbk (MBMA) ramped up nickel ore output and advanced its strategic projects in the first half of 2025. Although Nickel Pig Iron (NPI) production declined due to smelter maintenance and a deliberate reduction in High Grade Nickel Matte (HGNM), MBMA continues to strengthen its operational foundations.
MBMA President Director Teddy Oetomo disclosed that in the first half of 2025 the company booked revenue of USD 628 million, down 32% year-on-year. Even so, EBITDA fell only 8% to USD 77 million, and—after adjusting for HGNM effects—EBITDA grew 33% year-on-year in the second quarter.
“The SCM nickel mine produced 6.9 million wet metric tonnes (wmt) of nickel ore in the first half of 2025, up 78% from a year earlier. This included a 45% increase in limonite output and a 189% increase in saprolite. Despite heavy rainfall, our investments in mining capacity and infrastructure have created stronger, more sustainable operations,” said Teddy Oetomo in a written statement in Surabaya, Saturday (September 27, 2025).
He further noted that during the period the Rotary Kiln–Electric Furnace (RKEF) smelter produced 33,045 tonnes of NPI, down 23% year-on-year due to scheduled maintenance. NPI cash costs fell to USD 9,719 per tonne in the second quarter of 2025. MBMA also reduced HGNM production and sales to manage margin volatility.
MBMA continues to invest in strategic projects, including the construction of High Pressure Acid Leach (HPAL) facilities with global battery-materials partners. PT ESG New Energy Material’s HPAL plant sold 9,465 tonnes of nickel in the form of Mixed Hydroxide Precipitate (MHP) in the first half of 2025 via Train A operations, while Train B began production at the end of the second quarter of 2025.
Construction of the PT Sulawesi Nickel Cobalt (SLNC) HPAL plant is also progressing, with the first train targeted for commissioning in mid-2026. The SLNC HPAL plant—designed for 90,000 tonnes of nickel per year in MHP—has reached 29% completion, with first-train commissioning targeted for mid-2026.
In addition, construction of two Feed Preparation Plants (FPP) and a slurry pipeline to deliver limonite ore to HPAL facilities in Morowali is on track, with completion targeted for late 2025 and mid-2026, respectively.
Other strategic projects are also proceeding as scheduled, including the Acid Iron Metal (AIM) complex operated by PT Merdeka Tsingshan Indonesia (MTI), comprising a pyrite plant, an acid plant, chloride metal facilities, and a copper cathode plant. The pyrite and acid plants are operating at full capacity, while the other two plants are expected to reach full production by year-end.
“We are highly optimistic that the sustained growth in our nickel ore production, together with progress on the HPAL and AIM projects, will be transformative for MBMA,” Teddy Oetomo concluded.
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