Indonesian Owned Nickel Company

Translator

TEMPO

Editor

Laila Afifa

22 August 2023 17:32 WIB

TEMPO.CO, Jakarta - PT Ceria Nugraha Indotama (CERIA), is a nickel mining company owned by Indonesia. The company carries out its mining activities from upstream which is exploration and extraction to the downstream process such as nickel ore processing and refining, in accordance with the mandate of the mineral downstream program launched by President Joko Widodo.

CERIA Group CEO Derian Sakmiwata said it was part of CERIA's mission to provide high-quality nickel products. It also provides added value to stakeholders while supporting the environment and local communities.

In 2011, CERIA was trusted by the government to manage the Lapao-Pao Block located in Wolo District, Kolaka Regency, Southeast Sulawesi Province, through an auction for the Mining Business License Area (WIUP). The Lapao-pao Block WIUP, which has an area of 6,785 hectares, was previously part of the concession area of PT INCO (now PT Vale Indonesia) which was returned to the Indonesian government in 2010.

Previously, PT Vale Indonesia has also conducted preliminary surveys and exploration within this Block, identifying the potential for nickel laterite content. Now, as the license holder of the Lapao-pao Block WIUP, CERIA will focus on good and sustainable mining practices, through the application of mining techniques and mineral conservation, applying the latest mining technology, and always paying attention to the environment and surrounding communities where CERIA operates.

Indonesian government support for CERIA through the granting of status as a National Strategic Project (PSN), makes CERIA's activities in line with the government's program to achieve the downstream of minerals in the country. CERIA's mining area has also been declared a National Vital Object (Obvitnas).

CERIA currently has 2,200 employees and will employ up to more than 5,000 employees to support the construction and operation of the nickel ore processing and refining plant. Its geographically strategic location, as it is surrounded by several rivers, provincial road access, directly adjacent to the coastline, allows CERIA to have two dedicated terminals and is supported by PLN from renewable electricity sources, including the main source of Hydroelectric Power Plant (PLTA) and other renewable electricity sources, such as wind and biogas and gas, make CERIA uses green and clean energy.

Having an experienced and dedicated team, and conducting its operations within a sound Environmental, Social and Governance (ESG) framework, CERIA is ready to provide high-quality low-carbon nickel products. The hope is that it will be able to provide added value to stakeholders and contribute to a sustainable future in the Electric Vehicle (EV) Battery ecosystem.

CERIA often receives offers of cooperation or acquisition from both domestic and overseas parties, but until now it has not found an ideal cooperation scheme in accordance with the company's vision and mission. However, Derian emphasized that his party wants to maintain its management position and become a main player in its own country.

"It is very important for the nation's children to master mineral exploration and extraction technology so that they can maximize the added value of natural resources, in this case, domestic minerals," said Derian.

That way, Derian continued, the earth is not only a source of raw materials which are then exported abroad but produces processed goods that have high added value. "It is expected to provide a multiplier effect for the industry and other supporting activities," he said.

Qualified and professional Indonesians as workers.

Ceria Manages Indonesia’s Nickel Reserve

Nickel laterite is an Indonesian natural resource that has the potential to advance the Indonesian economy. Indonesia is among few countries that have nickel laterite ores, scattered in the Meratus mountains, Kalimantan Sea Island, the eastern arm of Sulawesi Island, Maluku, and Papua.

Laterite nickel ore consists of three main layers containing nickel, which is limonite, smectite and saprolite. Indonesia is rich in nickel ores in the form of limonite and saprolite with nickel levels of around 0.6 - 2.23 percent.

Saprolite is characterized by higher nickel content. Limonite generally has a lower nickel content, but there is a good level of other associated minerals, which is cobalt.

The mining area of PT Ceria Nugraha Indotama (CERIA) contains limonite nickel ore with good nickel and cobalt content. CERIA has identified potential laterite nickel mineral content within its WIUP area of more than 600 million tons.

Since 2017, CERIA has been producing nickel ore with an average saprolite ore production of 2.5 million tons per year for the domestic market. Through a sustainable mine production plan, the reserve is expected to be sufficient to process and refine for more than 20 years.

To ensure CERIA's position in the growing and highly competitive nickel market, CERIA utilizes the latest and efficient technology. The processed nickel ore products will have good nickel content and purity so that they are suitable for international markets, including Korea, Japan, Europe and America.

In line with the government's nickel downstream program, CERIA is currently building a smelter complex with a capacity of 252,700 tons per year to process saprolite nickel ore through the Pyrometallurgy process using a Rotary Kiln Electric Furnace (RKEF) equipped with a 4 x 72MVA rectangular furnace. This latest furnace technology is capable of producing a nickel extraction efficiency of 92.6 percent, higher than traditional circular RKEF technology which generally only has a capacity of around 33 - 36MVA.

The rectangular burner is characterized by low energy consumption. The furnace is also equipped with a copper cooling system that allows for a longer furnace life and a longer maintenance period, resulting in low operating costs.

The RKEF smelter is also equipped with a waste heat recycle system facility that circulates hot gasses from the furnace back to the dryer for more efficient energy use. The ferronickel to be produced is planned to be of high quality with a nickel content of 22 percent.

The RKEF smelter will also produce Ferronickel which is processed into Nickel Matte. Nickel Matte will be refined into nickel sulfate which is one of the raw materials for electric vehicle battery precursors.

CERIA will not only produce grade 2 nickel ore through processing, but will also refine it to produce grade 1 nickel products that are closer to finished materials and have a much higher added value. CERIA is developing a limonite nickel leaching plant using the Hydrometallurgy process, applying High Pressure Acid Leaching (HPAL) technology.

The construction of HPAL will be carried out in two stages using six autoclave machines to produce Mixed Hydroxide Precipitate (MHP) battery raw materials with a production capacity of 293,200 tons per year or equivalent to 110,900 tons of Nickel metal and 11,300 tons of Cobalt metal per year. MHP is then processed into nickel sulfate and cobalt sulfate which are raw materials for battery precursors. The mine production target is 14 million metric tons of limonite and saprolite per year upon completion of the 4 line 72 MVA RKEF smelter and HPAL.

CERIA Group CEO Derian Sakmiwata, said, to add sustainable competitive value towards the EV Battery ecosystem, from Ferronickel produced by the RKEF smelter, CERIA will build a Nickel Matte converter plant that produces 74,900 tons of high grade Nickel Matte at 71.9 percent. Furthermore, the Nickel Matte refinery process will produce Battery Grade Nickel Sulphate of 238,700 tons per year with a nickel content of 22.2 percent. While from the HPAL Phase 1 and Phase 2 plants that produce MHP, CERIA is developing an HPAL refinery (MHP Refinery) which produces Battery Grade Nickel Sulphate of 246,117 tons per year with a Nickel content of 22.2 percent and Battery Grade Cobalt Sulphate of 27,129 tons per year with a Cobalt content of 20.5 percent.

The next stage of development is the Battery Precursor factory (Precursor Cathode Active Material) which is a refining process from Nickel Matte Refinery and MHP Refinery which will produce 318,981 tons per year with a composition of 811 for Nickel, Cobalt and Manganese. "The CERIA roadmap will position the company as a competitive player in both the nickel market and the domestic and international Electric Vehicle (EV) battery industry," said Derian.

Ceria Nugraha Indotama (CERIA) Group CEO Derian Sakmiwata.

Therefore, as a 100 percent Indonesian company, CERIA continues to advance its vision as a world-class nickel and cobalt mining company through efficient and sustainable business processes.

CERIA also realizes that ESG is the main basis in running a future-oriented company. Today, more and more companies and investors are realizing the importance of integrating ESG aspects in making business decisions.

The ESG approach has also become a benchmark in assessing company performance. In terms of the environment, CERIA has implemented an efficient and sustainable project development structure, such as utilizing green energy and renewable energy, integrating mining and processing operations in one area to be more efficient and effective, processing domestic waste into compost, conducting environmental monitoring and protection, saving water and energy resource utilization.

CERIA also conducts land rehabilitation, pollution prevention and management of hazardous and toxic waste (B3) and domestic waste, and maintains biodiversity. CERIA's social program has six pillars, which is Education, Health, Economy, Sociocultural, Environment and Infrastructure.

Villages around the operating area are a priority for CERIA's Community Development Program, starting from the nearest settlement in Ring 1 and 2 areas including scholarship programs for underprivileged children from elementary, junior high, high school and undergraduate levels. Of the total workforce, CERIA has also engaged approximately 73 percent of the workforce from the priority Ring scale areas.

In terms of governance, CERIA also ensures security in each work scope through integrated security management to ensure construction activities and project operations run safely. CERIA also provides equal opportunities for all workers to develop their potential, appreciates cultural, ethnic and religious diversity, and respects fellow workers, regardless of gender.

CERIA also contributes to state revenues, thereby driving regional and national economic growth and supporting development programs. CERIA's tax payments continue to increase from year to year, ranging from Mining Tax, Corporate Income Tax, Local Tax, and Non-Tax State Revenue (PNBP). That is why CERIA is well-appreciated by the Directorate General of Taxes, through the Kolaka Primary Tax Service Office (KPP) of Southeast Sulawesi Province for the largest contribution of tax revenue for the category of private mining companies in the Kolaka working area.

As a company committed to compliance with the implementation of applicable environmental laws and regulations, for four consecutive years since 2017, CERIA has also received a BLUE rating in the Company Performance Rating Assessment Program (PROPER) from the Ministry of Environment and Forestry of the Republic of Indonesia.

CERIA Infographic