Harita Nickel (NCKL) Aims for 120,000 Ton Ferronickel Production in 2024

Harita Nickel (NCKL) Aims for 120,000 Ton Ferronickel Production in 2024

PT Trimegah Bangun Persada Tbk (NCKL), or Harita Nickel, is aiming for 120,000 tons of ferronickel (FeNi) production this year.

President Director of Trimegah Bangun Persada, Roy Arman Arfandy, revealed the production target comes from the company’s two Rotary Kiln Electric Furnace (RKEF) smelters.

“[The production target] is achieved through Megah Surya Pertiwi (MSP) smelter with 25,000 tons (FeNi) capacity and Halmahera Jaya Feronikel (HJF) with 95,000 tons FeNi capacity,” Roy told Kontan, Wednesday (7/2).

NCKL also aims to produce 55,000 tons of nickel content in MHP through Halmahera Persada Lygend (HPL). MHP production is projected to increase after the operation of Obi Nickel Cobalt (ONC), which has an installed capacity of 65,000 tons of nickel content in MHP. 

ONC production will range around 30,000 tons, along with the operation of three MHP production lines, which will be carried out in stages throughout 2024.

Roy explained that the outlook for nickel this year is affected by several factors, such as the global need for stainless steel products and the growth of electric vehicle sales.

He thinks the need for high-grade and low-grade nickel ore derivative products is still potential. 

“However, the current challenging macroeconomic conditions, combined with the high growth of nickel production in Indonesia, also affect the world nickel market,” Roy continued.

The company expects an improvement in global economic conditions that will boost demand for nickel-derived products and improve the overall nickel outlook.

While focusing on achieving operational performance targets, Harita Nickel will also focus on completing several projects this year.

“One of them is our second refinery with High-Pressure Acid Leach (HPAL) technology from Obi Nickel Cobalt (ONC) in the second quarter of 2024,” Roy explained.

Kontan noted that Trimegah Bangun Persada’s performance managed to grow during the January-September 2023 period. Its performance showed an increase in net profit and NCKL revenue in this period.

This nickel mining issuer posted a net profit of IDR 4.64 trillion. This figure rose 23.8% from NCKL’s net profit in the same period last year of IDR 3.60 trillion.

The increase in net profit was consistent with the increase in revenue. This Harita Group-affiliated issuer posted revenues of IDR 17.29 trillion, up 135.13% from revenues in the same period last year of only IDR 7.35 trillion.

Revenue from the nickel processing segment became the backbone of NCKL, which amounted to IDR 14.86 trillion, followed by the nickel mining segment worth IDR 2.43 trillion.


Image source: Kontan / Ardian Taufik Gesuri