By Romel S. Gurky
IDX-listed PT Merdeka Battery Materials Tbk (IDX: MBMA), an integrated nickel mining company, has announced its production guidance for 2025, aiming for significant growth in its nickel output.
The company stated that for 2025, it plans to produce 6.0 to 7.0 million wmt of saprolite ore and sell 12.5 to 15.0 million wmt of limonite ore. The expected cash costs for saprolite and limonite are projected to remain below $23/wmt and $11/wmt, respectively, with further cost reductions anticipated.
In 2024, MBMA’s PT Sulawesi Cahaya Mineral (SCM) nickel mine expanded operations and infrastructure, resulting in a significant increase in ore production and cost reductions. Saprolite production rose to 4.9 million wmt, more than double the 2.3 million wmt produced in FY2023. Limonite production also reached 10.1 million wmt.
This growth in production was accompanied by notable cost reductions. By the end of 4Q 2024, saprolite cash costs dropped to $21.6/wmt from $28.4/wmt in Q1, and limonite cash costs fell to $9.0/wmt from $11.5/wmt during the same period.
For 2025, MBMA projects Nickel Pig Iron (NPI) production of 80,000 to 87,000 tonnes, with cash costs below $11,000/t and an all-in sustaining cost (AISC) under $11,200/t. MBMA expects to achieve 60–70% ore self-sufficiency in FY2025, supported by increased saprolite ore delivery and the completion of BSI smelter overhauls.
High-Grade Nickel Matte (HGNM) production is expected to range from 50,000 to 55,000 tonnes, with both cash costs and AISC anticipated to be below $13,500/t. Meanwhile, Mixed Hydroxide Precipitate (MHP) production is expected to be between 25,000 and 30,000 tonnes, with average cash costs below $9,000/t after cobalt credits, once operations reach their full design capacity.
Read also: MBMA hits record nickel output and first MHP production in 4Q 2024
In FY2024, MBMA produced 82,161 tonnes of nickel in NPI, with a cash cost of $10,307/t, representing a 26% YoY increase in volume and a 15% decrease in costs. HGNM production reached 50,315 tonnes, with a cash cost of $13,547/t, reflecting a 66% YoY increase in volume and an 8% YoY decrease in costs.
In December 2024, PT ESG New Energy Material successfully produced its first batch of MHP, marking a significant milestone in MBMA's strategy for downstream battery material production.
Teddy Oetomo, President Director of MBMA, stated that MBMA anticipates that cash costs will decrease further in line with the ramp-up of saprolite ore delivery from the SCM mine and following the completion of the BSI smelter overhauls. “We are also monitoring the profitability of our refining facilities with the HGNM plant is being closely monitored. When acceptable profit margins are not achieved, MBMA may consider curtailing production if the current market conditions persist,” he said.
He added, “As we expand our operations, we focus on sustainability, responsible business practices, and cost optimisation. Our investments in HPAL and the AIM plant are key drivers of our long-term growth, and we are committed to delivering value to our stakeholders while contributing to the global energy transition.”
MBMA is well-positioned to strengthen its role as a key player in the global battery materials industry. The company remains focused on expanding production capacity, optimising costs, and enhancing profitability while driving sustainable growth.
Editing by Reiner Simanjuntak
