MBMA Reports 6.9 Million WMT Nickel Production Amid Strong Sales Growth in H1 2025
Mon 29 Sep 2025, 14:55 PM
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PT Merdeka Battery Materials Tbk (MBMA) announced its financial results for the six months ended June 30, 2025, recording significant growth in nickel ore production and sales.
Although production of Nickel Pig Iron (NPI) declined due to scheduled smelter maintenance as well as a reduction in High Grade Nickel Matte (HGNM) output during the period.
Throughout the first half, the Company booked revenue of USD 628 million, down 32 percent from last year, reflecting the temporary impact of smelter maintenance.
EBITDA fell 8 percent to USD 77 million, indicating margin resilience despite lower contributions from processing operations.
In the second quarter alone, EBITDA grew 33 percent year-on-year (YoY) after adjusting for the impact of HGNM.
MBMA President Director Teddy Oetomo said that in the first half of 2025, the SCM nickel mine produced 6.9 million wet metric tonnes (wmt) of nickel ore.
“A massive increase of 78 percent compared with last year, consisting of a 45 percent rise in limonite output and a 189 percent increase in saprolite, despite high rainfall during the period,” Teddy said on Monday (September 29, 2025).
This growth is the result of MBMA’s investments in mining capacity and infrastructure over the past 12–18 months, which have created stronger and more sustainable operations.
During the period, the Rotary Kiln–Electric Furnace (RKEF) smelter produced 33,045 tonnes of NPI, down 23 percent year-on-year due to scheduled maintenance.
This maintenance will enhance operational safety and efficiency, and lay the groundwork for future cost reductions.
In the second quarter of 2025, NPI cash costs fell to USD 9,719 per tonne, marking the first time the cash cost has dropped below USD 10,000/t.
For HGNM, MBMA strategically reduced production and sales to manage margin volatility, prioritizing the more profitable NPI operations until market conditions improve.
“In the first half of 2025, MBMA recorded strong growth in nickel ore production and sales, underscoring the scale and operating capability of our mining business. Although processing volumes were affected by scheduled maintenance, this will help lower costs and strengthen our long-term competitiveness,” Teddy explained.
MBMA is also continuing to invest in strategic projects, including the construction of integrated High Pressure Acid Leach (HPAL) facilities with global battery-materials partners.
PT ESG New Energy Material (PT ESG), an HPAL plant with capacity of 30,000 tonnes of nickel per year in the form of Mixed Hydroxide Precipitate (MHP), sold 9,465 tonnes of nickel in MHP during the first half of 2025 through 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, with capacity of 90,000 tonnes of nickel per year in MHP, has reached 29 percent completion, with the first train targeted for commissioning in 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 progressing well, with completion targeted for late 2025 and mid-2026.
Other strategic projects are also on schedule, including the Acid Iron Metal (AIM) complex operated by PT Merdeka Tsingshan Indonesia (MTI), comprising pyrite, acid, chloride metal, and copper cathode plants.
The pyrite and acid plants are operating at full capacity, while the other two plants are expected to reach full production by the end of this year.
“We are highly optimistic that the sustained growth in our nickel ore production, together with progress on the HPAL and AIM projects, will deliver a major transformation for MBMA,” Teddy concluded.
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