PT Halmahera Persada Lygend (PT HPL) has commissioned the second phase of its Obi Island operation, adding an additional 18ktpy Ni capacity.

PT HPL, a joint venture between Lygend Resources & Technology and Harita Group, operates a high-pressure acid leach (HPAL) plant on Obi Island, Indonesia. The plant was the first of the HPALs to be commissioned in the country and produces mixed hydroxide precipitate (MHP) to supply the electric vehicle (EV) battery supply chain. Designed over three phases, the operation has a planned capacity that totals 120ktpy Ni. Whilst the first phase was commissioned in May 2021 and all output shipped overseas, this second phase will see an additional 18ktpy Ni and 2.25ktpy Co. Finally, a third and final phase will see an extra 65ktpy Ni, which is expected to be commissioned by Q4 2023.

Important developments in the Indonesian nickel space are now occurring on a very regular basis and this is reflective of the direction of travel for nickel supply in the market at present. The news comes during the same week that Indonesian Investment Minister Bahlil Lahadalia reportedly confirmed that European chemicals producer BASF and French miner Eramet were close to agreeing a US$2.6Bn deal on the development of an HPAL at Weda Bay to produce 67ktpy Ni and 7ktpy Co in MHP.

Taking into consideration all the announced projects in Indonesia (including those where final investment decisions have not been taken) that may be developed over the coming decade, Project Blue now counts the total possible capacity of nickel in MHP at a staggering 1.1Mtpy Ni. MHP represents an increasingly crucial feedstock for nickel sulphate production at both integrated and third-party operations to satisfy the rapid growth in demand for EV batteries.