ASIATODAY.ID, KOLAKA – The Indonesian National Army (TNI) guarantees the security of the National Vital Objects (Obvitnas) and the National Strategic Projects (PSN) for nickel smelters in Indonesia.
This step is part of the TNI’s commitment to ensure that the nickel downstream investment launched by President Joko Widodo (Jokowi) goes on target.
“Every time there is Obvitnas and PSN, it is indirectly the duty of the TNI to ensure their security. The TNI must always protect strategic national projects for the benefit of the people,” emphasized the Commander of the XIV Hasanuddin Military Command, Major General Andi Muhammad when reviewing Obvitnas and PSN for the nickel processing and refining (smelter) facility built by PT Ceria Nugraha Indotama. (CNI) Group in the Lapao-lapao block, Wolo District, Kolaka Regency, Southeast Sulawesi, Monday (15/8/2022).
According to Major General TNI Andi Muhammad, as a vital national asset, nickel smelter projects belonging to the CNI Group must be protected because these projects are fully supported by the state. Moreover, CNI Group is the only Domestic Investment (PMDN).
Currently, Andi Muhammad said, there are a number of investments in the Southeast Sulawesi region, but most of them belong to Foreign Investments (PMA).
To ensure that the CNI Group nickel smelter project operates according to the target in 2024, Major General TNI Andi Muhammad approaches three approaches.
First, the prosperity approach (prosperity). This approach focuses on the agenda of strengthening the economy and community empowerment.
“We see a lot of assistance, mosque construction and others that are extraordinary. If the community is protected, protected and involved, the community itself will take care of the company because they have an interest,” he explained.
Second, the environmental approach. The company is obliged to carry out environmental commitments through the implementation of an Environmental Impact Analysis (AMDAL) so that mining activities do not cause ecological impacts.
Third, the security approach. “We are here to help the CNI Group as much as possible in carrying out social communication, in order to create conditions starting from the Koramil, Kodim, Korem and Kodam levels,” he said.
Andi emphasized that CNI Group complies with procedures and is very legal to protect.
“So if someone disturbs the CNI Group, it means that the Dandim and Korem and I are also responsible for securing it. If anyone is still playing with the CNI Group, communicate it well. Anyone must take care, if necessary remind them not to do it. If there is a problem and the CNI Group is at a loss, it means that the state is also being harmed. Therefore, the mindset of the people needs to be straightened out,” said Andi.
“In the success of the National Strategic Project, although it is not requested, the TNI will still maintain and oversee the sustainability of the National Strategic Project,” he said.
Meanwhile, President Director of PT CNI Group, Derian Sakmiwata, appreciated the commitment of Pangdam Hasanuddin to ensure the stability and security of CNI Group’s smelter investment.
Derian explained that currently Nickel has become a global commodity and an important component in the electric vehicle industry.
“Without nickel, stainless steel and electric cars will not run well. Because nickel contains Cobalt which determines the quality of a battery. Currently, 30 percent of the world’s nickel is in Indonesia and the Lapao-pao block has enough nickel and cobalt spare parts to support the national and global electric vehicle industry,” he explained.
According to Derian, to build a smelter requires no small amount of funds and CNI Group is one of the domestic companies that has full support from State-Owned Enterprises (BUMN) including a consortium of national banks. Even the central government has designated the CNI Group nickel smelter project as Obvitnas and PSN.
“This shows how important the construction of a smelter is so that this project must proceed according to plan. If this factory is built on time, it will certainly provide added value for the people of Kolaka and the Indonesian state,” he added.
As a reference, the CNI Group WIUP in the Lapao-pao block is a strategic location for the construction of a Nickel smelter because it is supported by the availability of nickel raw materials from its own mine location and the Special Terminal (Tersus) located on the coast.
In developing the smelter, CNI Group uses 2 technologies, namely the Rectangular Rotary Kiln Electric Furnace (RKEF) technology with a capacity of 4×72 MVA, consisting of 4 production lines to process Saprolite Nickel ore and High Pressure Acid Leaching (HPAL) technology to process Nickel ore. Limonite (lower grade Nickel ore) to produce batteries.
This plan does not include future development opportunities, considering that CNI Group has a potential Nickel Laterite deposit of more than 500 million tons based on a Geophysical survey with Geo-Penetrating Radar (GPR) technology.
The total investment value of the entire smelter is estimated at USD2,312 million which will be carried out through several stages.
The smelter developed by the CNI Group, when completed will have a total capacity of around 100,000 tons of Nickel and more than 4,000 tons of Cobalt annually, consisting of 252,000 tons of output from Rectangular RKEF in the form of Ferronickel with 22% Nickel in it and from HPAL processing. will produce an output of 103,000 tonnes in the form of Mixed Hydroxide Precipitate (MHP) which contains 40,000 tonnes of Nickel and over 4,000 tonnes of Cobalt.
This Ferronickel product can be further processed to produce Stainless Steel and its derivative products (consuming needs). Nickel Matte and Nickel Sulfide can be used to produce battery raw materials. Meanwhile, HPAL technology will produce MHP which can be further processed into Cathode and Anode Battery Precursors.
The construction of the Laterit Rectangular RKEF and HPAL CNI Group smelters involved ENFI, a Chinese BUMN as an engineering designer and also an Indonesian BUMN that has a global reputation in the field of nickel ore processing technology, as an EPC contractor, namely PT PP (Persero) Tbk.
Meanwhile, for the supply of smelter electricity, a PLN substation in Wolo has been built which has been energized to supply 350 MW of electricity, and further expansion will be carried out by an additional capacity of 350 MW, bringing the total to 700 MW. (ATN)
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