news 
Billionaires-Backed MBMA Building $1.8 Billion Smelter In Sulawesi
Indonesian-based Merdeka Battery Materials (MBMA), backed by billionaires Garibaldi Thohir and Edwin Soeryadjaya, has announced plans to construct a massive $1.8 billion nickel smelter in Sulawesi, solidifying its presence in the region’s growing mining industry.
The proposed high-pressure acid leach (HPAL) smelter, located within the Morowali Industrial Park in Central Sulawesi, will be developed and operated by an MBMA affiliate, Sulawesi Nickel Cobalt. Construction has already commenced, with operations expected to begin within 18 months.
According to Teddy Oetomo, president director of MBMA, expanding downstream processing capabilities is crucial for the company’s strategy to maximize the value of its extensive nickel resources. Once completed, the facility will produce a staggering 90,000 tonnes of mixed hydroxide precipitate, a critical material essential for the production of electric vehicle (EV) batteries.
The new smelter will source raw materials from MBMA’s Sulawesi Cahaya Mineral unit, which operates one of the world’s largest nickel mines. The mine holds approximately 13.8 million tonnes of nickel and one million tonnes of cobalt.
Funding for the project will come primarily through loans, with Indonesian and overseas banks committing $1.4 billion in financing. MBMA’s parent company, Merdeka Copper Gold, counts Thohir and Soeryadjaya as major stakeholders. Thohir holds a 7.4% stake, while Saratoga Investama Sedaya, owned by Soeryadjaya, maintains a 19.4% ownership.
Thohir ranks 17th on Indonesia’s 50 Richest list with a net worth of $3.8 billion, while Soeryadjaya holds the 33rd spot with a net worth of $1.6 billion.
