PT Merdeka Battery Materials Tbk (MBMA) is actively conducting exploration activities to increase the company's nickel resource reserves. Most recently, this subsidiary of PT Merdeka Copper Gold Tbk (MDKA) spent USD 1.2 million or equivalent to IDR 19 billion for exploration at the Sulawesi Cahaya Mineral (SCM) nickel mine, Konawe, Southeast Sulawesi, in the second quarter of 2024.

“MBMA has an active exploration program focused on delineating additional nickel resources at the SCM mine. During the second quarter of 2024, MBMA has completed exploration activities with a total estimated cost incurred for the SCM mine of IDR 19 billion,” MBMA management wrote in an official statement quoted on Sunday (14/7/2024).

MBMA's management said the costs were incurred for drilling to determine the mine life resource and related test work. “All work was completed by PT Sulawesi Cahaya Mineral, with testing methods of diamond drilling, geological mapping, sampling, and geophysical surveys (ground penetration radar/GPR),” said MBMA management.

MBMA management revealed that the areas selected for the exploration drilling program are areas close to the current mine pit, and in line with future mining plans. From the exploration during the second quarter of 2024, 353 drill holes were completed with a total depth of 8,639 meters.

“Other activities include a 45.3 km GPR survey in the PB area, geological mapping, and 270 ha of sampling at BR2&3 South, and DS East,” MBMA management wrote.

The diamond drilling (DD) program will continue using 16 drill rigs for resource/infill and exploration drilling. GPR surveys and geological mapping will continue for further exploration drilling targets.

The SCM Mine is a global-scale, high-quality and low-cost mining operation located in a 21,100 hectare concession area. Previously owned by Rio Tinto, the SCM Mine contains approximately 13.8 million tons of nickel (1.22% Ni grade) and 1.0 million tons of cobalt (0.08% Co grade) with a multi-decade mine life.

The SCM Mine's 77% limonite ore is used to produce Mixed Hydroxide Precipitate (MHP), which can be converted into nickel sulfate for the production of electric vehicle (EV) battery feedstock. The saprolite ore produced will be sent to MBMA's RKEF smelter in Indonesia Morowali Industrial Park (IMIP) for further processing into Nickel Pig Iron (NPI).