PT Eramet Indonesia, a subsidiary of French mining giant Eramet Group (Eramet SA), has officially increased its production target in Indonesia for 2025 to 42 million tons of nickel ore. This move comes after the company received approval for a revised Work Plan and Budget (RKAB) from the Ministry of Energy and Mineral Resources (ESDM).This production target adjustment reflects Eramet Indonesia's strategy to adapt to increasing global demand, particularly from the electric vehicle battery industry, which requires both high- and low-grade nickel. The addition of 10 million tons to the 2025 Work Plan and Budget (RKAB) significantly increases the production target from the previous 32 million tons."We are targeting 42 million tons of ore because we just received an extension of the RKAB for an additional 10 million tons," said Jerome, a representative of Eramet Indonesia, at the Eramet: Journalist Class event in Central Jakarta.Focus on Limonite Ore for HPAL SmelterJerome emphasized that an additional 10 million tons is allocated specifically for the production of low-grade nickel ore (limonite), which will be processed using High Pressure Acid Leaching (HPAL) technology at the Weda Bay Nickel facility. "The new RKAB we received is for limonite, to supply the HPAL smelter at Weda Bay Nickel," he explained.Specifically, the 2025 production target is 30 million tons of saprolite (high-grade nickel), consisting of 27 million tons for sale to Nickel Pig Iron (NPI) facilities and 3 million tons for internal use, as well as 12 million tons of limonite for HPAL facilities. This strategy ensures a secure supply of nickel limonite for HPAL smelters, as global demand for electric vehicle batteries, which require high-quality raw materials, increases.In comparison, Weda Bay Nickel's production reached 32 million tons in 2024. The target of 42 million tons in 2025 represents an increase of approximately 31 percent, affirming Eramet Indonesia's ambition to strengthen its position as a major nickel producer in Indonesia.Medium-Term Projections and Expansion PotentialEramet Indonesia also projects a similar production target of 42 million tons for 2026, with potential for further expansion in the medium term. Jerome explained that the Weda Bay mine's capacity, based on a feasibility study, could reach 60 million tons per year. "We hope to receive RKAB approval for this full capacity in 2027 or 2028," he said.This production capacity expansion is seen as crucial to supporting the growth of the domestic battery industry and ensuring Indonesia remains a key player in the global nickel supply chain. With the growing demand for electric vehicles, the supply of high-quality nickel is strategically important to the renewable energy ecosystem.Industry Strategy and ImplicationsThis step to increase nickel production demonstrates Eramet Indonesia's focus not only on quantity but also on quality and continuity of supply for its HPAL smelter. By prioritizing limonite for HPAL technology, the company is able to provide raw materials suitable for the needs of the modern battery industry.Increased nickel production will also have a positive impact on the local economy, particularly in the Weda Bay mining area. The expansion of mining capacity will create new jobs, boost economic activity in the surrounding area, and stimulate the growth of related supporting industries, such as logistics, infrastructure, and technical services.Furthermore, this project aligns with the Indonesian government's strategy to strengthen the downstream mineral industry, particularly in supporting the development of electric vehicle batteries and the national energy transition target. With sufficient nickel ore availability, the domestic battery industry can grow faster and reduce dependence on imported raw materials.Challenges and OpportunitiesDespite significant expansion opportunities, Eramet Indonesia also faces challenges in ensuring efficient and sustainable mining operations. Environmental factors, mining permits, and fluctuations in global nickel prices require careful management. However, the company's extensive experience in the mining sector and the support of HPAL technology are believed to be able to overcome these challenges.On the other hand, the increased nickel production target offers opportunities for investors and downstream industries to strengthen supply chains, increase processing capacity, and utilize limonite and saprolite as strategic raw materials for electric vehicle batteries. This aligns with global trends driving the shift to electric vehicles and clean energy.
Source https://djakarta-miningclub.com