Trimegah Bangun Persada Tbk PT

Trimegah Bangun Persada Tbk PT is a mid-tier nickel producer headquartered in Jakarta, Indonesia, operating primarily in Indonesia. The company's portfolio consists of 1 operating mine. Key assets include Obi Island. The business model centers on a vertically integrated value chain, from upstream mining of laterite ores to downstream processing and refining. A key operational characteristic is the dual-technology approach, utilizing both Rotary Kiln Electric Furnace (RKEF) for saprolite ore to produce ferronickel and High-Pressure Acid Leaching (HPAL) for limonite ore to create Mixed Hydroxide Precipitate, a precursor for battery materials. This strategy enables the comprehensive utilization of the entire ore body. A significant competitive advantage stems from the co-location of mining operations and processing facilities, which generates substantial logistical efficiencies and reinforces its position as a low-cost producer. The enterprise pioneered the development of the country's first HPAL plant, establishing a strategic foothold in the electric vehicle battery supply chain. This integrated structure, from resource extraction to the creation of high-value finished products, is fundamental to its market strategy and operational resilience.

Strategic priorities center on strengthening and deepening value chain integration through sustainable downstream expansion. Core objectives include optimizing mining performance to ensure a reliable supply of ore for its processing facilities and enhancing operational efficiency to maintain its low-cost producer status. The business strategy encompasses prudent investments to increase production capacity and develop higher value-added products, particularly for the fast-growing battery materials sector. The organization intends to build a comprehensive ecosystem by leveraging its upstream resources and expanding cooperation with partners along the value chain, including in the electric vehicle industry. A key pillar of this strategy is the continued commitment to good mining practices and ESG principles to support long-term, sustainable growth. Future initiatives involve exploring strategic investments to further expand into downstream battery materials and solidify its market leadership.

Governance is structured around a 3-member Board of Commissioners, which includes 2 Independent Commissioners, and a 5-member Board of Directors. The President Director, Roy Arman Arfandy, contributes extensive experience from the banking and automotive sectors. The Board of Commissioners provides oversight through an Audit Committee and also directly performs the Nomination and Remuneration function. The Board of Directors is supported by operational committees, including a Sustainability & Diversity Committee and an Ethics & Risk Committee. In 2024, the Board of Commissioners held 6 internal meetings and 6 joint meetings with the Directors, while the Directors held 12 internal meetings. A key governance enhancement in 2024 was the revision of the Whistleblowing System policy to align with international standards for Conflict-Affected and High-Risk Areas (CAHRAs), reinforcing the entity's commitment to a responsible supply chain and transparent operations.

The sustainability strategy is integrated into operations, underscored by a commitment to the Initiative for Responsible Mining Assurance (IRMA) standards. Environmental stewardship initiatives in 2024 included the completion of a Landscape-Level Nature Risk Assessment (LNRA) to guide sustainable development, the rehabilitation of 861.57 hectares of land, and the deployment of 1,871 artificial coral reef units. The organization is advancing its decarbonization strategy with the development of a 300-MWp solar power plant. Social responsibility is demonstrated through 110 community development and empowerment programs focused on education, health, and economic development, achieving a Community Satisfaction Index of 89. The entity also completed a major village resettlement project. Governance is strengthened by achieving Responsible Minerals Initiative (RMI) conformance for one facility, ensuring responsible sourcing, and updating key policies on human rights and conflicts of interest to align with global best practices.

The corporate structure is characterized by strategic partnerships and investments in both wholly-owned subsidiaries and associated entities to support its integrated value chain. In 2024, the organization expanded its downstream capabilities by establishing two new joint ventures: PT CKM, a limestone processing entity formed with a strategic partner where the company holds a 40% stake, and PT BBS, an entity created to process refining residue, in which its associate PT HPL holds a 94.26% interest. The company also strengthened its position in the battery materials sector by increasing its ownership stake in its associated entity, PT ONC, from 10% to 20% through an acquisition from a partner. Further vertical integration was achieved when its subsidiary, PT GTS, acquired a 99% share in PT KKT, a stone quarrying company, during the same year. These structural changes reflect a deliberate strategy to enhance operational efficiencies and capture more value along the production chain.