Subsidiary Of The Bakrie Family Conglomerate Collaborates With Mining Company In Central Sulawesi To Provide Nickel Ore Supply

Anindya Bakrie. (Photo: Doc. Antara)

JAKARTA - PT VKTR Teknologi Mobilitas (VKTR), a subsidiary of PT Bakrie & Brothers Tbk (BNBR) which is engaged in battery and transportation electrification acceleration, cooperates with PT Tambang Nickel Sulteng (TNS) to supply nickel ore.

This cooperation agreement is stated in a Memorandum of Understanding (MoU) signed by VKTR President Director Gilarsi W. Setijono and TNS President Director Ronny Tanusaputra, in Palu, Central Sulawesi.

"Currently VKTR continues to strive to take a role in the development of the electric vehicle ecosystem in the country, considering that Indonesia has nickel ore reserves of 25 percent of all world reserves," said Gilarsi in a written statement, quoted from Antara, Friday, July 22.

In accordance with the MoU, TNS will provide VKTR with a supply of nickel ore obtained from an environmentally friendly mining process. The nickel ore is planned to be processed by a joint venture between VKTR and other parties. Meanwhile, TNS will also be given the opportunity to own shares in the joint venture.

Downstream nickel industry, continued Gilarsi, later could make Indonesia a major player in the field of lithium battery production. This downstreaming will certainly increase the added value of the economy significantly.

According to Gilarsi, in 2022, the government targets the production of refined nickel to reach 2.58 million tons. This target will be supported by production of Ferronickel of 1.66 million tons, Nickel Pig Iron of 831,000 tons, and Nickel Matte of 82,900 tons.

"We hope that in the next five years domestic nickel production can continue to increase in a sustainable manner given the abundance of nickel reserves in Indonesia," he said.

Indonesia's nickel ore reserves can reach 73 years for low grade nickel ore below 1.5 percent or limonite nickel ore. The assumption of the age of the reserves comes from the total reserves of nickel limonite ore reaching 1.7 billion tons and the need for domestic processing capacity of 24 million tons per year.

Meanwhile, for high grade nickel ore above 1.5 percent or saprolite nickel, the age of the reserves is said to be only sufficient for the next 27 years. This calculation is based on the assumption that the amount of saprolite ore is 2.6 billion tons and the capacity for domestic smelters is 95.5 million tons per year.