MTI received a capital injection from PT Merdeka Copper Gold Tbk (MDKA) to increase copper facility management in Morowali for export on Monday 1st August 2022 which was promised on 29th July 2022.
MTI a subsidiary of MDKA was established through a joint venture with Eternal Tsingshan Group Ltd. MDKA owns the shares indirectly through PT Batutua Pelita Investama 79,99% in the sector of acid, iron and metal project. The company is located in Morowali Industrial Park in Morowali Regency.
MDKA on Monday 1st of August 2022, is allocating money to MTI as promised on 29th July 2022 during an agreement on a facility expansion project worth US$50 million which will be used for increasing facility management.
MDKA management said, “the loan worth reached US$50 million which will be used by MTI in accordance with planning, procurement, construction and the development planning to increase management facility of MTI in copper production for export”
MDKA hoped this will help MTI to be more optimal and give a more positive impact on the company (MDKA). Furthermore, the loan would be added with a 5% interest rate and a 3-month London Interbank Offered (LIBOR).
Currently, MTI had received a profit in Q1 2022 worth USD69,65 million or IDR1 trillion an increase from the previous Q1 2021 a loss of USD4,98 million.
However, during Pandemic Covid-19 the mining industry is also getting hit. One of Indonesia’s trading partners in copper is China. As China consumes 54% of the world’s copper, further, according to Lokadata.beritagar.id, Indonesia exports copper to China at 27,54% of the total export with 85,000 tons of copper and worth US$539,2 million. According to CNBC Indonesia, China would be on the verge of another lockdown with prices of copper would fell 1% as a result, because China’s economic prospects currently could be blurry as an effect of the pandemic making the market worried about demand.
