Harita Nickel Sets Ambitious Production Goal for 2024
Harita Nickel is aiming to significantly boost its ferronickel production to 120,000 tons in 2024. The company's CEO, Roy Arman Arfandy, disclosed that this target would be achieved with the support of its two Rotary Kiln Electric Furnace (RKEF) smelters. The Megah Surya Pertiwi (MSP) smelter is expected to produce 25,000 tons of ferronickel, while the Halmahera Jaya Feronikel (HJF) smelter is set to contribute 95,000 tons.
In addition to ferronickel, Harita Nickel is also aiming for 55,000 tons of nickel content in Mixed Hydroxide Precipitate (MHP) through its Halmahera Persada Lygend (HPL) operation. The company anticipates an increase in MHP production following the commencement of the Obi Nickel Cobalt (ONC) operation, which boasts an installed capacity of 65,000 tons of nickel content in MHP. ONC's production is expected to be around 30,000 tons, with three MHP production lines starting operation throughout 2024.
The outlook for nickel this year is influenced by global demand for stainless steel products and the growth in electric vehicle sales. Despite the potential demand for high-grade and low-grade nickel ore derivative products, challenges such as current macroeconomic conditions and increased nickel production in Indonesia could impact the global nickel market.
Harita Nickel remains optimistic about an improvement in global economic conditions that could enhance the demand for nickel derivative products and positively affect the nickel market's prospects.
Furthermore, Harita Nickel is focused on completing several projects this year, including the launch of its second refinery employing High Pressure Acid Leach (HPAL) technology at Obi Nickel Cobalt (ONC) in the second quarter of 2024.
The company's financial performance has shown significant growth during the January-September 2023 period, as evidenced by an increase in net profit and revenue. Harita Nickel recorded a net profit of IDR 4.64 trillion, marking a 23.8% increase from the same period the previous year. Revenue soared to IDR 17.29 trillion, up 135.13% from the previous year, with the nickel processing segment contributing IDR 14.86 trillion and the nickel mining segment adding another IDR 2.43 trillion.
This ambitious production goal and financial performance underline Harita Nickel's strong position in the nickel industry and its commitment to contributing to the global nickel supply chain.
