Recently, PT Sumber Mineral Global Abadi Tbk. (SMGA), a subsidiary of PT Sumber Global Energy Tbk. (SGER), officially entered the nickel smelting sector in partnership with PT Hengsheng New Energy Material Indonesia to produce nickel matte. On Friday, October 31, 2025, SMGA and PT Hengsheng New Energy Material Indonesia signed a strategic cooperation agreement. Through this collaboration, SMGA will acquire a portion of Hengsheng's shares, and the two parties will jointly develop converter nickel smelting facilities to upgrade low-grade matte into high-grade matte.
The planned smelter will utilize Oxygen-Enriched Side-Blown Furnace (OESBF) technology, a globally recognized efficient and environmentally friendly nickel refining method. Hu Bo, a Director of SMGA, stated that this partnership represents a strategic move for SMGA to solidify its position in the global nickel industry chain and accelerate the transition toward a green economy. This initiative also forms part of SMGA's broader strategy to strengthen the downstream nickel industry supply chain within Indonesia while supporting the development of the country's sustainable new energy sector.
Written by Cora Ji, jiruyan@mysteel.com
