Jakarta. Mining contractor Hillcon recently signed a letter of intent for cooperation with a subsidiary of the nickel smelting firm Merdeka Battery Materials in Konawe, Southeast Sulawesi. 

The subsidiary in question was Sulawesi Cahaya Mineral (SCM). The letter of intent marked the beginning of a strategic partnership in the nickel mining industry, according to Hillcon’s president director Hersan Qiu.

The freshly signed deal is also expected to catapult the company’s overall revenue to reach the targeted Rp 5 trillion ($308.4 million) this year. The addition of SCM will expand Hillcon’s list of clientele which now includes 9 mines, including Indrabakti Mustika -- a subsidiary to PAM Mineral, Weda Bay Nickel, and Adhi Kartiko Pratama.

“The demand for nickel ore will continue to grow in line with the growth of the nickel smelting capacity in Indonesia,” Hersan said.

Hillcon is aiming to produce 17 million wet metric tons in 2024, up by 25 percent versus last year’s production. Hillcon has set to amass Rp 5 trillion in revenue for this year, about Rp 2 trillion to Rp 2.5 trillion will come from the nickel sector.