Jakarta. Mining company Archi Indonesia (ARCI) plans to invest as much as $120 million to expand its gold smelter capacity by 50%, betting on sustained demand for downstream metal processing as Indonesia pushes deeper into mineral industrialization.

The company said it aims to raise annual smelter capacity to 6 million tons from 4 million tons, with construction expected to begin this year. The expansion will be financed entirely through internal cash, helping the company preserve a healthy balance sheet while accelerating medium-term growth plans.

Investor Relations officer Fredric said a scoping study completed in January showed the expansion was technically and financially feasible.

“We will increase the smelter’s production capacity from 4 million tons per year to 6 million tons per year,” Fredric said during a public expose in Jakarta on Thursday. “The scoping study was completed in January 2026 and delivered positive results.”

The project comes as Indonesia intensifies efforts to build domestic mineral processing industries and reduce reliance on overseas refining facilities. Successive governments have promoted downstream processing to capture more value from the country’s vast natural resources, particularly nickel and copper, while leveraging elevated global commodity prices.

Chief Executive Officer Rudy Suhendra said the smelter expansion would strengthen Archi’s long-term growth outlook by improving operational efficiency and increasing processing flexibility.

“Larger-scale production is expected to improve operational efficiency while reducing dependence on overseas processing facilities,” Rudy said.

The company estimates the expansion will require between $100 million (Rp 1.73 trillion) and $120 million in investment until operations commence.

The announcement came alongside shareholder approval for a $60 million cash dividend payout for the 2025 fiscal year, equivalent to about 60% of the company’s net profit.

Half of the dividend, worth roughly 449.8 billion rupiah ($27 million), was distributed as an interim dividend in December 2025, or 19.81 rupiah per share. The remaining $30 million is scheduled for payment in June.

Archi posted a net profit of $102.5 million in 2025, supported by revenue growth to $496.2 million amid resilient commodity markets.

Momentum carried into this year, with first-quarter profit surging nearly 188% to $30.2 million from $10.5 million a year earlier. Revenue during the January-March period climbed to $136.9 million from $90.8 million.