Integrated vertical mining and processing for Critical Mineral: A case study in Obi Island, North Maluku Province

Abstract Harita Nickel Group in Obi Island, Indonesia pioneered the utilization of limonite nickel ore (Ni <1.5%) for electric car batteries in the country. Nickel mining in Obi Island transitioned from nickel mining in 2010 to integrated mining by establishing downstream processing of raw materials for stainless steel in 2016 and electric car battery in 2018. Pyrometallurgical and hydrometallurgical technologies are employed in factories within Harita Nickel’s mining concession area, notably PT Trimegah Bangun Persada Tbk (PTTBP). This vertically integrated mining and downstream processing in Obi Island, South Halmahera Regency, North Maluku Province, marks a significant advancement in Indonesia’s mining industry. The close proximity (<3km) of mining and factory locations ensures efficiency and low costs. In vertically integrated mining, companies seek to maximize the use of all materials involved in production processes, minimizing waste and optimizing resource utilization. This research focusing on the waste generated during nickel processing of RKEF can be repurposing into new products, reducing environmental impact and increasing sustainability. Nickel, a critical mineral, has garnered global attention, particularly since Indonesia emerged as the world’s largest nickel ore reserve. The extractive industry, employing pyrometallurgy technology, has rapidly produced stainless steel raw materials from nickel mining since 2016. Indonesia’s nickel ore, known as saprolite nickel with high nickel content (>1.7%), has been exploited since the 1970s, while the low-grade limonite nickel layer gained traction only around mid-2018. In the future, Harita Nickel project in western Obi Island will be developed as an Eco Industrial Park for a greater integration, highlighting the comprehensive benefits of vertically integrated mining and providing a more thorough and insightful evaluation of its potential.