Jakarta. State-owned mining company Aneka Tambang (Antam) is set to manage two nickel mining blocks —namely, the Marimoi I Block in East Halmahera, North Maluku, and the Lililef Sawai Block in Central Halmahera, North Maluku.

"The company is currently undergoing administrative processes to commence exploration activities in these two mining areas," said Corporate Secretary, Syarif Faisal Alkadrie, in Jakarta on Thursday.

In early February, the Energy and Mineral Resources  Minister Arifin Tasrif announced the winners of the auction for nine mining licenses for metal and coal minerals. Antam won two of the blocks and was granted a maximum of 8 years to conduct exploration in their respective areas.

"Additionally, Antam ensures ongoing exploration activities following industry standards to obtain results that will provide insights into the potential of nickel, which can then be developed," Syarif added.

The company is pushing forward with its plan to establish an electric vehicle ecosystem in Indonesia, with a primary focus on nickel as the key raw material required for battery production.

In 2022, Chinese battery manufacturer CATL announced it would partner with Antam and Indonesia Battery Cooperation (IBC) via CBL on an EV battery project. The joint investment totaled nearly $6 billion. 

In late December 2023, Antam sold a portion of its shares in its two subsidiaries --Sumberdaya Arindo and Feni Haltim (FHT)-- to Hong Kong CBL as part of the EV battery project. Hong Kong CBL is a subsidiary of CATL.

In 2023, Antam recorded a nickel ore sales volume of 11.7 million tons, significantly surpassing the target of 9.4 million tons. 

"We are confident that Antam's nickel ore sales volume will remain robust in 2024 as the demand for nickel ore is expected to stay strong, and the supply is becoming more limited due to stricter mining regulations imposed by the government," wrote BRI Danareksa Sekuritas analyst Hasan Barakwan in his research recently.

BRI Danareksa Sekuritas has raised its projection for Antam's nickel ore sales volume by 36.4 percent to 15 million tons. This adjustment is made because ANTM's production capacity is deemed sufficient to capitalize on the continuously increasing demand.