Petrosea Signs IDR 16 Trillion Mining Service Agreement with Vale Indonesia
Petrosea Signs IDR 16 Trillion Mining Service Agreement with Vale Indonesia
08 Apr 2025, 04:07 PM 3321

PT Petrosea Tbk has announced the signing of a major contract with PT Vale Indonesia Tbk for the provision of mining and transportation services for nickel ore in the Bahodopi area, Central Sulawesi. The contract value is estimated to reach IDR 16 trillion with a duration of 10 years.This contract was signed on 8 April 2025 and includes Mining Services and Transportation of Nickel Ore Material for the Bahodopi Block 2 and 3 owned by Vale Indonesia. Under this agreement, Petrosea will act as the main contractor responsible for the entire mining process and material logistics.Petrosea’s management agreed that this agreement was part of the company’s long-term strategy to expand its portfolio and strengthen its position in the national mining industry. This new contract is also expected to boost the company’s financial and operational performance over the coming years."This contract is a major milestone in our journey to continue creating added value and expanding Petrosea's services," read the official statement.Petrosea offers various pit-to-port project services, including open pit contract mining services, civil & infrastructure construction, mining project management services, technical & feasibility study consulting services, mine planning & optimization services and its Minerva Digital Platform solution that leverages the latest digital technologies to increase efficiency and productivity, as well as be applied at each mineral and coal mining operation. Petrosea also has the capability to monitor and control operational activities at multiple sites by utilizing real-time data through its Remote Operations Center which is located at the Company’s headquarters.

PT Ceria Smelter Enters Final Stage, FeNi Commercial Production Targeted for End of April
PT Ceria Smelter Enters Final Stage, FeNi Commercial Production Targeted for End of April
08 Apr 2025, 10:35 AM 4517

PT Ceria Nugraha Indotama (Ceria) targets the first commercial production of Ferronickel (FeNi) from the Merah Putih Smelter Line 1 to begin at the end of April 2025. PT Ceria is a nickel mining and processing company created by the nation's children operating in Kolaka, Southeast Sulawesi.General Manager of RKEF Operation Readiness PT Ceria, Roimon Barus said that the hot commissioning process has been running since February 23, 2025. Starting with feeding nickel ore to the dryer system and continued with electric furnace heating up."All electric furnace units have been actively using electricity supply since early April 2025. We are optimistic that the first commercial production of FeNi will be realized at the end of April 2025," he said in a press release, Tuesday (8/4/2025).PT Ceria's Merah Putih Smelter carries Rotary Kiln Electric Furnace (RKEF) technology with a capacity of 72 MVA. This technology is designed not only for production efficiency but also to meet strict Environmental, Social, and Governance (ESG) standards.The Rectangular Electric Furnace technology implemented by PT Ceria has advantages in energy efficiency because it is able to retain heat longer, optimize fuel combustion, and reduce electricity consumption per ton of product. This design also minimizes exhaust emissions, supporting the principle of environmental responsibility.In addition, the smelter facility is equipped with a dust collector system, waste management, and digital and real-time emission monitoring tools, to ensure that environmental quality standards are always adhered to.All electricity supplies for the PT Ceria Smelter also come from PLN UID Sulselrabar which has obtained a Renewable Energy Certificate (REC). Ensuring the use of green energy and supporting the national decarbonization target. "With the use of this green electricity, PT Ceria's nickel products have a minimal carbon footprint, supporting the sustainable nickel industry in Indonesia," he said. Sustainable MiningNot only in the downstream sector, PT Ceria's ESG implementation is also applied comprehensively in the nickel mining area in Wolo District, Kolaka Regency. PT Ceria prioritizes the principles of good mining practice which include environmental management, community social empowerment ( social responsibility ), and good corporate governance ( governance ).In terms of the environment, PT Ceria carries out sustainable management of post-mining land reclamation and revegetation, erosion and sedimentation control, and protection of protected areas around the mining area. The company also implements an integrated water management system to maintain the quality of environmental water.From a social perspective, PT Ceria prioritizes empowering local workers and developing MSMEs. Then education and health programs for the surrounding community, as well as maintaining harmonious relations with local stakeholders.Meanwhile, the implementation of the governance principle is manifested in an operational system that complies with laws and regulations. Strict internal supervision, and openness of information to the public, especially in managing environmental and social aspects."As a PMDN, PSN, and Obvitnas company, PT Ceria is committed to building a responsible and sustainable nickel industry ecosystem, from mining to downstream products," he explained.Towards a Global Player in the ESG-Based Nickel IndustryIn long-term development, PT Ceria is targeting the construction of a total of 4 RKEF production lines with a production capacity of 252,800 tons of FeNi per year or equivalent to 55,600 tons of nickel metal.In addition, the development of Nickel Matte Converter, Nickel Sulphate, and HPAL (High Pressure Acid Leach) facilities to produce Mixed Hydroxide Precipitate (MHP) is also being designed to strengthen PT Ceria's position in the EV Battery Supply Chain.Raimon emphasized that with the implementation of modern RKEF technology and an ESG-based operating system, PT Ceria's Red and White Smelter is projected to produce high-quality Ferronickel (FeNi) products. Including green nickel products or green nickel products that have advantages in terms of environment and sustainability.FeNi products from PT Ceria's Smelter will have a low carbon footprint. This is because it is supported by the use of electrical energy from green energy sources, energy efficiency technology in furnaces, and strict emission and waste management according to global standards. This makes PT Ceria's nickel products increasingly competitive in the international market, especially to support the needs of the electric vehicle supply chain and the world's clean energy industry."With all these standards and technologies, PT Ceria is ready to produce environmentally friendly green nickel products, support the green economy, and strengthen Indonesia's position as a major player in the sustainable nickel industry based on ESG and Good Mining Practice in the world," he said.

Merdeka Copper (MDKA) Update on Pani and Tujuh Bukit Gold Projects
Merdeka Copper (MDKA) Update on Pani and Tujuh Bukit Gold Projects
07 Apr 2025, 10:44 AM 5696

PT Merdeka Copper Gold Tbk ( MDKA ) provides updates on the Pani gold project and Tujuh Bukit Mine. Pani gold construction has reached 33% by the end of 2024.First gold pouring is targeted for early 2026. The Pani gold project is projected to be one of the largest primary gold mines in Indonesia, with a peak production target of around 500,000 ounces of gold per year.On the other hand, the Tujuh Bukit Copper Project is claimed to have made significant progress with the updated indicated power estimate showing a significant increase compared to the previous estimate.MDKA plans to release an updated pre-feasibility study in the second quarter of 2025, which will include improved project economic projections as well as expanded production capacity.Merdeka Copper President Director Albert Saputro said that the company managed to record solid growth across all main business lines, supported by progress in various strategic projects."Merdeka remains steadfast in its commitment to achieving sustainable and profitable growth. With several important milestones awaiting in 2025 and beyond, we are optimistic about achieving continued success," he said in an official statement, Monday (7/4/2025).On the performance side, MDKA reported consolidated revenue of USD 2.24 billion in 2024, up 31% year-on-year (YoY). The company's EBITDA increased to USD 329 million or grew 36% compared to the previous year.MDKA's growth is supported by the performance of its subsidiary in the nickel sector, namely PT Merdeka Battery Materials Tbk (MBMA) and is supported by gold prices that remain high.MDKA achieved substantial growth through MBMA nickel operations driven by significant performance improvement at PT Sulawesi Cahaya Mineral Mine (SCM Mine), where production surged to 10.1 million wet metric tons (wmt) of limonite, marking a 150% year-on-year surge, and 4.9 million wmt of saprolite, up 110% from the previous year.The MBMA smelter also increased nickel production and produced 82,161 tonnes of nickel pig iron (NPI), an increase of 26%, and 50,315 tonnes of high-grade nickel matte (HGNM), an increase of 66% compared to 2023.One of the important milestones in Merdeka's nickel business strategy was achieved through PT ESG New Energy Material (ESG), a joint venture of the High Pressure Acid Leach (HPAL) plant between MBMA and GEM Co., Ltd.In February 2025, PT ESG successfully obtained an Industrial Business License (IUI), which was then followed by the initial commercial sale of 8,500 metric tons of mixed hydroxide precipitate (MHP) in March 2025."This achievement marks a significant step in Merdeka's nickel downstream expansion. The next MHP shipment is scheduled to take place throughout 2025," he explained.MDKA also noted progress in the development of the Acid Iron Metal (AIM) Plant operated by PT Merdeka Tsingshan Indonesia (MTI). The commissioning process of key components such as the Pyrite Plant and Acid Plant has been successfully completed.Meanwhile, the commissioning of the Chloride Plant and Copper Cathode Plant is progressing smoothly, with the Chloride plant successfully producing its first copper sponge in January 2025.

United Tractors (UNTR) Gold & Nickel Sales Soar at the Start of the Year
United Tractors (UNTR) Gold & Nickel Sales Soar at the Start of the Year
05 Apr 2025, 10:52 AM 3021

Astra Group mining issuer, PT United Tractors Tbk. (UNTR) recorded an increase in annual  gold and nickel sales volume throughout January-February 2025.In UNTR's monthly report, UNTR management explained that the company's gold sales volume through Agincourt Resources and Sumbawa Jutaraya reached 37,770 GEOs ( gold equivalent ounces ) during the January-February 2025 period.On a monthly basis, UNTR's gold sales volume in February 2025 jumped from 18,000 GEOs in January 2025 to 20,000 GEOs in February this year.UNTR also recorded nickel sales reaching 360,589 wet metric tons throughout January-February 2025. These sales consisted of 98,000 wmt saprolite and 263,000 wmt limonite.Meanwhile, on an annual basis, UNTR's nickel sales rose 121.16% to 260,589 wmt in the first two months of 2025, compared to the same period in 2024 of 163,043 wmt.UNTR President Director Frans Kesuma said in his annual report that gold prices continued to rise and reached their highest level in history at USD 2,690 per troy ounce in October 2024.By the end of the year, the price of gold closed at USD 2,648 per troy ounce in December 2024, up 30.2% compared to the price in January 2024 of USD 2,034."The increase in gold prices was triggered by geopolitical tensions, continued demand from central banks, US monetary easing by lowering interest rates which weakened the dollar and lowered US bond yields," said Frans.On the other hand, he continued, nickel prices did not show significant movement with an average price of USD 16,814 per ton in 2024. Nickel prices had touched a high of USD 19,587 per ton in May 2024, but then fell again.Throughout 2024, nickel prices fell by 4.1%, from US$16,104 per ton in January 2024 to USD 15,445 per ton in December 2024."Nickel mining production and production from Indonesian nickel smelters have increased very high, causing oversupply and impacting on falling prices," he said.

Wood Mackenzie Predicts Copper Investment Trends Will Focus on Increasing Production
Wood Mackenzie Predicts Copper Investment Trends Will Focus on Increasing Production
04 Apr 2025, 10:48 AM 3077

Analysts assess that the global investment trend in the copper mining sector will focus on increasing production in producing countries.This is inseparable from copper mines in producing countries that continue to age without new mines to replace them. Therefore, greenfield copper projects or mining in locations that have never been explored are considered promising.Referring to the latest Wood Mackenzie analysis shows a significant shift in capital allocation strategies in the copper mining sector. According to the analysis, the shift in investment trends in increasing copper production is driven by three factors.First, increasing non-discretionary capital expenditure requirements. Second, the continued need for a strong balance sheet to weather potential market volatility. Third, a growing focus on copper for growth and diversification strategies.The analysis highlights that share buybacks are becoming less attractive at current valuations. In fact, 2024 turns out to be the low point for buyback volumes among large mining companies, with notional returns dropping to negative levels for many companies.James Whiteside, Wood Mackenzie's Corporate Head of Metals and Mining, said share buybacks were no longer attractive. Instead, a shift to production growth was more promising."Diversified companies seeking relevance through big payouts are not being rewarded, but according to copper miners, investing in production growth is paying off," Whiteside said in a statement quoted Friday (4/4/2025).Greenfield copper projects are starting to offer the most attractive returns for capital investment, he said. However, not every mining company has a growth opportunity path.Wood Mackenzie estimates that major copper companies will accelerate their reinvestment efforts over the next three years, in aggregate exceeding 100% of their operating cash flow.Whiteside added that for some companies, embracing growth-oriented risk is now the optimal strategy."Our analysis shows that growth in the right commodities is profitable, while higher variable payouts are not beneficial for companies struggling for relevance," he said.Moreover, demand for copper from electrification is expected to increase significantly in the coming years. The high demand has also caused copper prices to reach an all-time high in May 2024, above USD 5 per pound.Whiteside concluded that mining companies are entering a new era of capital discipline. The market response to this different approach will influence the long-term capital allocation decisions of large mining companies."Companies that can effectively balance growth investments with shareholder returns will likely emerge as winners in this changing landscape," he said.

President Approves USD 40 Billion Downstreaming Plan to Boost Energy, Mining Sectors
President Approves USD 40 Billion Downstreaming Plan to Boost Energy, Mining Sectors
03 Apr 2025, 10:27 AM 3516

President Prabowo Subianto has approved the proposal for the first stage of downstreaming list for 2025 submitted by the National Downstream and Energy Resilience Task Force.Through this project, downstream activities are prioritized for 21 projects in 26 mining commodity sectors worth USD 40 billion (IDR 659.2 trillion).Head of the National Downstream and Energy Resilience Task Force, Bahlil Lahadalia, outlined 21 priority projects in the early stages, including a crude oil storage facility on Nipah Island, Batam. The project aims to increase domestic crude oil supplies for 30 days.In addition, there are other priority projects, such as the construction of an oil refinery with a capacity of 500 thousand barrels."This will be one of the biggest ones in the future, in order to encourage better energy security," Bahlil, who is also Minister of Energy and Mineral Resoiurces (ESDM), said on Monday, March 3, 2025.Bahlil said the government plans to restart the coal gasification project into dimethyl ether (DME) in three locations in Sumatra and Kalimantan.He said the project aims to process low-calorie coal to reduce imports of liquefied petroleum gas (LPG).Then, another priority project is the process of adding value to copper, nickel and bauxite commodities.In addition to the mineral, coal, oil and gas sectors, priority downstream activities also target the agriculture, fisheries and forestry sectors.Meanwhile, Minister of Investment and Downstreaming, Rosan P. Roeslani, said that the Daya Anagata Nusantara Investment Management Agency (BPI Danantara) will support downstreaming projects, especially in financing them.

Strengthening National Aluminum Supply Chain Integration, SGAR Phase II Begins
Strengthening National Aluminum Supply Chain Integration, SGAR Phase II Begins
01 Apr 2025, 10:39 AM 3697

State-owned Mining Industry Holding Company MIND ID through PT Indonesia Asahan Aluminium (Inalum) and PT Aneka Tambang Tbk (Antam) is further strengthening the integration of the national aluminium supply chain.Smelter Grade Alumina Refinery (SGAR) has entered phase II construction to complement SGAR Phase I, which has a production capacity of 1 million tons of alumina per year and is targeted to start full operations in the first quarter of 2025. With this development, the total alumina production capacity in Mempawah, West Kalimantan, will reach 2 million tons per year.The SGAR Phase II project is currently in the preparation stage for the completion of the Bankable Feasibility Study ( BFS) and Final Investment Decision (FID), which is targeted for completion in 2025. These two documents will be the basis for starting the Engineering, Procurement, and Construction (EPC) process.As part of the downstream strategy, Inalum will also build a new aluminum smelter to absorb the alumina produced, while strengthening the national aluminum industry supply chain.Director of Portfolio and Business Development of MIND ID, Dilo Seno Widagdo, said that this project is a strategic step to increase the added value of Indonesian minerals. With stronger integration, this project will answer the national aluminum needs which currently reach 1.2 million tons per year. "We see the national aluminum needs continue to increase. Therefore, we are strengthening the supply and supply chain to support the industrialization of the Indonesian manufacturing sector in the future," said Dilo as quoted in a written statement, Tuesday (1/4/2025)Dilo added that with an increasingly solid aluminum supply chain ecosystem, the MIND ID Group will strengthen bauxite reserve exploration to ensure the sustainability of raw material supply. "National bauxite reserves are currently recorded at 158.83 million tons, while production needs will continue to increase in the future," he explained.In addition to strengthening the industry, the development of SGAR Phase II is also expected to have a positive impact on the national economy. This project has the potential to contribute to economic growth of up to 5.5 percent by 2025, while also encouraging increased investment, employment absorption, and economic equality in the regions."This is in line with President Prabowo Subianto's Asta Cita, which targets the Indonesian economy to become more sovereign and grow stronger towards Golden Indonesia," he concluded.Inalum President Director, Ilhamsyah Mahendra said, the first shipment of alumina from Mempawah to INALUM's aluminum smelter in Kuala Tanjung, North Sumatra, is expected to take place at the end of April 2025. "We are grateful that all processes in the field are running very well, and we are in the stage of reaching 100% capacity. We hope that by the end of April, the first alumina can be sent to the Kuala Tanjung site," said Ilham.Meanwhile, Ilham explained that INALUM's aluminum smelter currently has an aluminum production capacity of up to 275,000 tons per year. All production results are prioritized to meet domestic aluminum needs. "With the SGAR Phase II expansion plan, domestic aluminum needs will be supplied more by domestic minerals, in order to strengthen Indonesia's mineral resilience," said Ilham.

AMMAN Targets to Start Copper Cathode Production by the End of March 2025
AMMAN Targets to Start Copper Cathode Production by the End of March 2025
20 Mar 2025, 03:22 PM 5106

PT Amman Mineral Internasional (AMMAN), through its subsidiary PT Amman Mineral Nusa Tenggara, which operates gold and copper mining in West Sumbawa Regency, West Nusa Tenggara, has announced plans to commence its first copper cathode production soon."The first copper cathode is expected to be produced by the end of March 2025," said AMMAN President Director Alexander Ramlie in a statement from Mataram on Thursday.Ramlie stated that the expansion project continues to progress under strict safety standards to ensure the long-term reliability of the facility.According to him, the smelter's operational component testing is still ongoing, with the successful production of the first copper anode on February 12, 2025."As we transform from a concentrate producer to a copper cathode and gold bullion producer, the company faces technical challenges, including optimizing processes and equipment performance, which are crucial for a smooth transition to full-scale operations," Ramlie added.Throughout 2024, AMMN recorded a significant increase in mining productivity and the production of copper, gold, and concentrate—each exceeding performance guidance by 6%, 7%, and 6%, respectively.This year also marks a historic milestone for gold production at Batu Hijau, West Sumbawa, primarily driven by high-grade ore from Phase 7.Furthermore, Ramlie highlighted that ongoing efficiency efforts have maintained the company’s position as one of the world’s lowest-cost copper producers."By integrating operations, fostering a renewed corporate culture, and leveraging advanced digital capabilities, we are strengthening the foundation for sustainable growth and long-term value creation," he concluded.

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