In early 2025, PT Merdeka Copper Gold Tbk (MDKA) demonstrated not only financial resilience but also perseverance in managing the complex production chain, which spans from precious metals to battery raw materials.

In the first quarter of 2025, Merdeka recorded consolidated revenue of USD 502 million. Behind that figure lies a narrative of ongoing expansion, technological adaptation, and downstreaming strategies.

Merdeka's revenue was primarily driven by rising gold prices, which contributed an additional USD 47 million from gold sales. Furthermore, sales of limonite to third parties contributed USD 24 million. These two commodities are key drivers of the global mineral market's dynamics.

On the ground, nickel mining activity at SCM (Sulawesi Cahaya Mineral) continues to record significant growth. During the first three months of 2025, the mine produced 1.8 million wet metric tons (wmt) of limonite—a 54% year-on-year (YoY) increase—and 1.3 million wmt of saprolite, a sharp 190% year-on-year increase.

Although the intensity of seasonal rainfall reduced production compared to the previous quarter, total volume remained higher than the same period last year.

However, not all graphs are moving upward. Nickel Pig Iron production from the RKEF (Rotary Kiln Electric Furnace) smelter decreased 22% year-on-year to 16,297 tons of nickel.

This decline is closely related to the gradual improvement process at PT Bukit Smelter Indonesia (BSI) following furnace repairs in the fourth quarter of 2024, as well as the temporary suspension of operations at PT Zhao Hui Nickel (ZHN) due to flooding and maintenance activities.

However, the upgrade process is believed to “improve safety and efficiency, as well as support future cost savings.” Additional improvements at BSI are also scheduled for the second half of 2025.

On the downstream side, Merdeka Battery Materials (MBMA) is moving aggressively through the development of a High Pressure Acid Leach (HPAL) plant. This project is being implemented through three subsidiaries—PT ESG New Energy Material, PT Meiming New Energy Material, and PT Sulawesi Nickel Cobalt (SLNC)—which are part of an integrated production system with global partners in the battery materials industry.

PT ESG has commenced production from Train A in late 2024, while Train B is planned to be operational in the second half of 2025. The transition to ore use from the SCM Mine and the integration of the Feed Preparation Plant (FPP) will support a gradual reduction in operational costs.

PT Meiming itself is currently undergoing commissioning of key components, particularly the autoclave, and has obtained an Industrial Business Permit (IUI) in April 2025.

Meanwhile, the SLNC project recorded construction progress of 14.35%, with commissioning targeted for the second half of 2026. This project is also strengthened by the construction of a new slurry pipeline network from the SCM Mine.

This places MBMA in a strategic position to supply nickel products that are efficient, scalable, and in line with global market demand.

Merdeka isn't just focusing on nickel and gold; it's also building for the future with its AIM (Acid, Iron, Metal) plant, which continues to show progress. Commissioning is proceeding steadily, and key facilities—including the pyrite plant, the acid plant, and the metal chloride plant—are experiencing increased capacity.

AIM began copper sponge production in January 2025. The acid plant even set a new record with a quarterly production volume of 168,738 tons. Meanwhile, construction of the copper cathode plant is nearing completion, with full capacity targeted for the second half of 2025.

Meanwhile, the Pani Gold Project, long considered one of Merdeka's strategic projects, is also showing steady progress. As of the end of the first quarter of 2025, the project had reached 49% completion.

Detailed engineering has been completed, the main construction contract has been awarded, and contractors have begun mobilizing on site. The latest resource model also shows promising potential for additional optimization.

"Commissioning is targeted for late 2025, with first gold production expected in early 2026", management stated. Simultaneously, a feasibility study for a tailings storage facility for the carbon-in-leach project has been completed. Engineering, permitting, and construction planning will continue throughout 2025.

Amidst all these achievements, Merdeka President Director, Albert Saputro, emphasized the company's commitment to inclusive and sustainable growth.

"We continue to record consistent progress across all core business segments and have completed several key milestones in our strategic projects. Merdeka remains committed to responsible long-term growth, while addressing the evolving opportunities and challenges in 2025 and beyond", Albert said in a press release on Monday (July 7, 2025).

With a portfolio spanning gold, copper, nickel, and battery material processing projects, PT Merdeka Copper Gold Tbk continues to implement various strategic initiatives across its various business lines.

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