ASIATODAY.ID, JAKARTA – The Indonesian government appreciates the investment of PT Ceria Nugraha Indotama (Ceria Group) in supporting nickel downstreaming in the country.
As a National Strategic Project and National Vital Object, Ceria Group is currently in the final stages of commissioning the ‘Merah Putih’ Rectangular Rotary Kiln Electric Furnace (RKEF) Smelter and preparing for High-Pressure Acid Leach (HPAL) construction in Wolo District, Kolaka Regency, Sulawesi Southeast.
“The government appreciates PT Ceria Nugraha Indotama in downstreaming nickel, especially since this is a domestic investment company. Ceria Group is building a RKEF smelter which will produce green nickel products, and HPAL in the future. Of course this is encouraging,” said the Coordinating Minister for Economic Affairs of the Republic of Indonesia, Airlangga Hartarto, at the 2024 Indonesia Mining Summit (IMS) at the Mulia Hotel, Jakarta, 4 December 2024.
Airlangga also appreciated PT PLN (Persero) for supplying clean energy to a number of smelters including the Ceria Group smelter, which is in line with the government’s plan to create renewable nickel downstream.
Airlangga said the government would try to help mineral and coal industrialization through a number of incentives. Currently there are 87 smelters operating out of a total of 172 smelters built.
“Investment is an important key to economic growth. In 2024, the investment target is IDR 1,900 trillion and in 2025 it will increase to IDR 2,100 trillion. One thing that continues to be developed is downstreaming and deepening the supply chain structure. Regarding critical minerals, it is necessary to maintain cooperation with other countries in order to increase investment and generate foreign exchange,” he explained.
According to Airlangga, downstreaming has proven to bear sweet fruit for the Indonesian economy. He also highlighted the importance of implementing Environmental, Social and Governance (ESG) principles in developing downstream investment in Indonesia.
“Development must apply environmentally friendly principles, conformity to regulations, and prioritize the use of local labor in stages. Technology transfer and efforts to increase the capacity of local communities are factors that the government emphasizes in every investment,” he added.
Global Player
On this occasion, Airlangga, accompanied by the Secretary General of the Indonesia Mining Association (IMA), Tony Wenas, visited the Ceria Group booth at the IMS event. This visit was warmly welcomed by the CEO of Ceria Group, Derian Sakmiwata. Interestingly, the Ceria Group booth also displays various products produced by Micro, Small and Medium Enterprises (UMKM) from communities around the mine.
“This UMKM is part of the Ceria Group program, which aims to support local economic empowerment and create a sustainable positive impact on the surrounding community,” said Derian.
Derian emphasized that as a Domestic Investment Company and National Strategic Project, Ceria Group has established a road map to become a global player in the nickel industry and EV battery material producer.
“To meet international market standards, Ceria Group is ready to produce green nickel products that are supported by clean energy,” he said.
Currently, Ceria Group has received a Renewable Energy Certificate (REC) from PLN, where the electricity supply used by the Ceria Group smelter uses 100 percent clean and renewable energy.
“Currently, PLN’s clean electricity flow sourced from the Hydroelectric Power Plant has been energized. Apart from that, the Nusantara II Barge Mounted Power Plant (BMPP) is already at the Ceria Group Port and is ready to supply electricity to the ‘Merah Putih’ Smelter which will soon be operational “BMPP Nusantara II-60MW uses 100% gas fuel with a capacity of 60 MW,” he explained.
He also revealed that the Ceria Group ‘Merah Putih’ Smelter which is ready to operate uses the latest Rectangular Rotary Kiln Electric Furnace (RKEF) technology and has one of the largest furnaces in Indonesia at 72 MVA. This furnace functions to process saprolite nickel ore which produces ferronickel output with a nickel content of 22 percent.
With advanced technology such as RKEF for the production of Ferronickel (FeNi) and Nickel Matte Converter, and High-Pressure Acid Leach (HPAL) for the production of Mixed Hydroxide Precipitate (MHP), Ceria Group plays an active role in creating products that have high added value.
“Ceria Group’s ‘Merah Putih’ smelter will be the first integrated smelter in Indonesia, where nickel ore supply and refining processing activities occur within the PT Ceria Nugraha Indotama Mining Business Permit (IUP) Area,” explained Derian.
ESG Principles
This smelter is designed with high sustainability standards, so it is ensured that every stage of the production process pays attention to ESG principles. With the modern technology used, this smelter is able to minimize emissions and waste, and manage natural resources efficiently.
“This is in line with Ceria Group’s vision to become a pioneer in the environmentally friendly and sustainable nickel industry in Indonesia,” added Derian.
According to him, with the ‘Merah Putih’ Smelter, Ceria will not only strengthen Indonesia’s position in the global supply chain, but also ensure that all the benefits from developing nickel resources can be felt by the Indonesian people.
“We are proud to be part of the national effort to increase added value and develop a domestic industry that is independent and highly competitive in the global market,” said Derian.
The main advantage of the ‘Merah Putih’ Smelter is that the entire industrial chain from nickel ore mining to refining and production of raw materials for batteries takes place domestically. In this context, Ceria Group not only increases the added value of minerals in Indonesia, but also supports local economic circulation more broadly.
“Ceria is a company with domestic investment. “This means that all added value from production activities will remain in Indonesia, thereby contributing directly to the national economy,” he said.
Meanwhile, Ceria Group Corporate Secretary, Imelda Kiagoes, emphasized Ceria’s commitment to supporting the commodity downstream program launched by the Prabowo Subianto government.
“Ceria Group focuses on developing downstream through downstream processing. With the organic growth that we plan for the next five years, our direction is towards the production of pCAM or precursor battery as the main material for electric vehicles (EV). This is in line with the government program, so we really hope for full support from the government to realize this vision. “Mining sustainability is also the focus of Ceria Group to ensure nickel resources and reserves continue for more than the next 20 years,” he added.
Imelda added that the development of the Ceria Group project in reducing carbon emissions refers to the Initiative for Responsible Mining Assurance (IRMA) 50 framework.
“As part of this plan, PT PLN through its subsidiary, PLN Batam, will build an Integrated Power Plant in the Ceria area, precisely at the Integrated Temporal Capacity Pomalaa Ceria. The Gas Engine Power Plant is planned to have a total capacity of 200 MW and is targeted to start construction in 2025. There are also several relocations of the Gas Engine Power Plant to the Ceria area amounting to 34 MW and 2 x 25 MW. “This Green Energy Footprint source is in addition to the 352 MW that has been signed with PLN,” he added.
This initiative supports the energy needs of Ceria Group’s downstream projects and is an important milestone in the development of efficient and environmentally friendly energy infrastructure in the region.
“In our operations, Ceria is fully committed to implementing ESG principles and complying with all international regulations, including the Inflation Reduction Act (IRA) regulations,” he said. (AT Network)
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