Virtue Dragon unit plans 6 mln tpy nickel expansion in Central Halmahera
Tuesday, March 17 2026 - 04:39 PM WIB
A subsidiary linked to PT Virtue Dragon Nickel Industry plans to expand its nickel mining operations in Central Halmahera to 6 million tonnes per year, according to an environmental filing, a company executive said on Monday.
Riska Widianingsih, President Director, said the plan was outlined in an environmental impact assessment (AMDAL) document.
The project will be carried out by PT Bakti Pertiwi Nusantara (BPN), which is controlled by PT Jacaranda Indonesia Investama with a 51% stake, while Virtue Dragon holds the remaining 49%.
BPN holds a nickel production mining permit covering 1,232 hectares in Central Halmahera, valid until May 2038.
Under the proposal, output capacity would be raised from 2.4 million tonnes per year to 6 million tonnes, while mine life would be extended to seven years from five.
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The expansion would also involve a sharp increase in workforce and equipment, with employee numbers projected to rise to 750 from 71 and heavy equipment units to 200 from 132. Supporting infrastructure, including fuel storage, wastewater treatment and water supply systems, would also be expanded.
The AMDAL document noted that a planned dedicated terminal would no longer be integrated into the project due to land ownership changes and would instead be handled through cooperation arrangements.
The project is located in Fritu village, North Weda district, an area that has become a key hub for Indonesia’s nickel industry.
Potential environmental impacts include increased noise, air pollution, runoff, erosion and risks to water quality, as well as impacts on local flora and fauna. However, the expansion is also expected to support local economic growth through job creation and business opportunities.
Virtue Dragon operates large-scale nickel processing facilities in Southeast Sulawesi with a nickel pig iron production capacity of around 600,000 tonnes per year, supported by captive coal-fired power plants.
Editing by Reiner Simanjuntak