On July 6, nickel miner PT PAM Mineral Tbk(NICL) said it will promote production and exploration to increase inventories or sustainable reserves, with its nickel mine sales target set at 1.5 million tonnes in 2022, in light of high demand for nickel downstream, particularly in manufacturing, construction and electric vehicle (EV) battery production sectors. That's up from the 2021 target of 1.3 million tonnes.
The sales target of 1.5 million tonnes includes 900,000 tonnes of high-grade nickel (1.5-1.75% nickel) and 600,000 tonnes of low-grade nickel (below 1.5% nickel). In particular, NICL's production of high-grade nickel is sold out under the contract with the customer.
NICL developed a strategy to pursue performance goals, one of which was to lower road levels in several MHR STA to minimize skidding processes and reduce lost time.
In another strategy, NICL also stores nickel ore stocks in exportable final ore (EFO) to maintain water content in the company's nickel ore, and piles of image stones along the port barrier to maintain sustainable wear. With its nickel stocks, NICL hopes to continue selling nickel ore during the rainy season.
PAM Minerals president Ruddy said the outlook for mining and nickel production would be positive in the long term due to high demand for nickel. The presence of a national battery industry and the growth of smelters using hydrometallurgical technology will also boost NICL's performance by absorbing low-grade nickel.
Currently, NICL's production comes from two entities, namely NICL's own mines and NICL's subsidiary PT Indrabakti Mustika(IBM), in which NICL directly owns 99.05%.
In 2022, NICL also proposed an additional production quota of 300,000 tons, which has been approved.
Initially, NICL plans to produce a combined 1.77 million tons of nickel ore, of which NICL plans to produce 570,000 tons and IBM will produce the remaining 1.2 million tons. With an additional production quota of about 300,000 tonnes, NICL's total production quota will be around 2.07 million tonnes. NICL is optimistic that 90% of the production quota can be achieved by 2022.
NICL's downstream customers include several factories, For example, PT Indonesia Ruipu Nickel and Chrome Alloy, PT Guan Ching Nickel and Stainless Steel, PT Kyara Sukses Mandiri, PT Sulawesi Mining Indonesia and PT Indonesia Tsingshan Stainless Steel.
