PT Merdeka Copper Gold Tbk (IDX:MDKA) has become the first mining company in Indonesia to successfully enhance the value of pyrite ore, a move that not only extends the lifespan of the mine but also increases its economic value.
This initiative began in April 2024 with the operation of the Acid, Iron, Metal (AIM) plant located in the Indonesia Morowali Industrial Park (IMIP), operated by PT Merdeka Tsingshan (MTI), a joint venture between MDKA and Eternal Tsingshan Group Limited.
Pyrite is an iron sulfide byproduct generated by copper mining at MDKA's Wetar mine in Southwest Maluku. Efforts to add value to pyrite have been part of the company’s plans since 2019. The smelting process at the Wetar mine previously only yielded copper, leaving byproducts that could not be further processed.
MDKA partnered with Tsingshan to conduct metallurgical trials on the Wetar pyrite ore, leading to the joint venture established on February 19, 2020.
According to the agreement, raw pyrite ore is transported 700 kilometers by sea from the Wetar mine to the AIM plant in IMIP. The AIM plant processes the pyrite into sulfuric acid, saturated steam, iron ore pellets, copper sponge, lead-zinc hydroxide, and potentially gold and silver. These products will be supplied to other subsidiaries for use in manufacturing high-quality electric vehicle batteries.
In its initial phase, the AIM plant is expected to have a nominal processing capacity of approximately 1 million tons of pyrite ore per year. Studies conducted by MDKA and Tsingshan estimate that sufficient pyrite ore reserves are available to support the plant's operations.
Based on existing stockpiles and untapped resources, management expects that the Wetar mine will be able to supply around 2 million tons of pyrite ore annually for at least 10 years.
With the shipment of pyrite ore from Wetar to the AIM plant, the Wetar mine is now transforming into a long-term pyrite mining operation. The AIM plant represents MDKA’s commitment to mineral conservation and adding value to mining outputs, bringing positive impacts to the surrounding community.
As a company with an ESG rating of A, according to Morgan Stanley Capital International (MSCI) since 2023, MDKA is dedicated to maintaining its reputation for high ESG performance.
Therefore, managing environmental impacts and ensuring positive outcomes for both ecosystems and communities are essential principles for the company.
