Skip to main content

Sulphur 417 Mar-Apr 2025

19 March 2025

Merdeka Battery to build new HPAL plant

INDONESIA

Merdeka Battery to build new HPAL plant

PT Huayue Nickel Cobalt’s site at Morowali.
PHOTO: PT HUAYUE NICKEL COBALT

Indonesian nickel miner Merdeka Battery Materials (MBMA) and partners have signed definitive agreements to construct a high-pressure acid leach (HPAL) plant on the Morowali industrial park, Sulawesi. The unit will have a nameplate capacity of 90,000 t/a of contained nickel in mixed hydroxide precipitate (MHP). PT Sulawesi Nickel Cobalt (SLNC) will construct and operate the plant adjacent to the existing HPAL plant operated by PT Huayue Nickel Cobalt (HNC). SLNC will source and process laterite nickel ore through a 20 year commercial agreement with MBMA’s SCM mine, starting from the commissioning date. An ore preparation plant will be built at the SCM mine to enable ore transportation via pipeline to the SLNC processing plant at IMIP. The total combined investment for constructing SLNC (including interest incurred during construction) is expected to be approximately $1.8 billion according to Merdeka. Construction of the project commenced in January 2025 and is expected to reach commissioning stage within 18 months.

Teddy Oetomo, President Director of MBMA, said: “Expanding our downstream processing capabilities is essential to our strategy for maximising the value of our extensive nickel resources. The SLNC partnership, supported by competitively priced debt financing from leading domestic and regional banks, represents a significant milestone in advancing MBMA’s strategy for producing downstream battery materials. This partnership not only highlights the quality of our company, but also reflects the Indonesian government’s ongoing support for the domestic minerals and processing industry.”

Latest in Asia

Coromandel starts trial operations at new acid plants

Coromandel International says that it has started trial production at its new sulphuric acid and phosphoric acid plants in Kakinada, Andhra Pradesh. The company says that this marks a crucial step towards transforming the unit into a fully integrated facility, significantly enhancing production capacity and diminishing reliance on imported raw materials for fertiliser manufacturing. The company is now focusing on a phased ramp-up. The new plants have of 2,000 t/d of sulphuric acid and 650 t/d of phosphoric acid, respectively. The integration of these acid plants is strategic, aligning with Coromandel's objective to strengthen backward integration in its fertiliser manufacturing value chain. By producing key intermediates in-house, the company aims to secure stable supplies, enhance cost efficiencies, and achieve greater self-sufficiency, thereby reducing dependence on imported raw materials. The project aims to replace over 50% of the Kakinada plant's imported acid requirements and mirror the integration levels seen at its Vizag and Ennore facilities.

Indonesian nickel shutdown to cut sulphur/acid demand

Four Chinese-operated nickel plants at the Indonesian Morowali Industrial Park have temporarily ceased operations following a fatal landslide in February, in a development that will significantly reduce regional demand for sulphur and sulphuric acid. The shutdowns affect facilities run by China’s GEM Co. and its partners, which together account for 30% of Indonesia’s high-pressure acid leaching (HPAL) capacity. The move comes amid heightened regulatory scrutiny. The largest of the four plants, PT QMB New Energy Materials, could remain offline for up to three months.

NCOC seeks arbitration over sulphur fine

The North Caspian Operating Company (NCOC), which operates the huge Kashagan oil field in Kazakhstan, has said that it is seeking international arbitration to resolve its ongoing dispute with the government of Kazakhstan. Kazakhstan has imposed a swingeing $4.6 billion fine for alleged violations of sulphur storage regulations at the NCOC site. In December, a special administrative court in Astana turned down an appeal by NCOC, although it also granted leave to appeal in a higher court. NCOC, a partnership between Shell, Eni, TotalEnergies, ExxonMobil, China National Petroleum Corporation, Inpex and Kazakh state oil and gas company KazMunayGaz, continues to maintain that its sulphur handling operations have been conducted in compliance with Kazakhstan’s laws and that it had the required permits in place.