Gem Co. 1H net income 799.1M yuan

Gem Co. 1H net income 799.1M yuan

Indonesian sovereign wealth fund Danantara has entered into a significant agreement with Chinese company GEM Co. Ltd. to develop a $1.42 billion nickel plant in Indonesia. The project, which includes the construction of a high-pressure acid leach (HPAL) facility, is expected to produce 66,000 tons of nickel in mixed hydroxide precipitate annually [1].

The HPAL facility will be part of a broader initiative by Danantara to expand its presence in the Indonesian nickel sector, which accounts for over half of global nickel supply. This development aligns with Danantara's strategic goals under President Prabowo Subianto’s leadership. The fund, with $1 trillion in assets under management, has previously explored collaborations with other entities such as French nickel miner Eramet SA [1].

GEM Co. Ltd., which already operates two HPAL plants in Indonesia, will co-invest in the project alongside Danantara. The collaboration is expected to involve additional partners, including PT Vale Indonesia. The company will also fund a $30 million metallurgical research lab with Bandung Institute of Technology [1].

The development of this nickel plant comes at a time when nickel prices have been subdued due to increased supply from Indonesia, which has led to reduced profitability for producers. Despite the challenging market conditions, HPAL plants like the one being developed by Danantara and GEM Co. Ltd. continue to be seen as a promising investment opportunity due to their role in the production of battery-grade nickel for electric vehicles [1].

GEM Co. Ltd. reported a net income of 799.1 million yuan for the first half of 2025, reflecting the company's robust performance in the nickel sector [2]. This financial result underscores the company's commitment to expanding its operations and investing in new projects, such as the one with Danantara.

The project's timeline and location have not been disclosed, but it is expected to involve substantial investment and collaboration among multiple partners. This development highlights the strategic importance of the Indonesian nickel sector and the role of sovereign wealth funds like Danantara in driving economic growth and investment in the region.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-27/danantara-and-gem-to-develop-1-4-billion-indonesia-nickel-plant
[2] https://www.gem.com/news/financial-results/