Bahodopi smelter electricity supply, Vale Indonesia (INCO) opens all options

PT Vale Indonesia Tbk (INCO) will open all options for providing electricity to the smelter in Bahodopi.INCO’s Chief Financial Officer (CFO) Bernardus Irmanto said the evaluation process for thefinal investment decision(FID)stage wasstillongoing.

Bernardus said, in meeting electricity needs, there are three things to focus on, namely power adequacy, reliability and stability of supply.

“Regarding electricity supply, for investments worth more than US$ 1 billion, what we need is stability and reliability of electrical energy supply,” Bernardus explained to Kontan.co.id, Tuesday (15/6).

Bernardus continued, the three main factors are considered because investors do not want to take risks for electricity needs.

In addition to considering the adequacy of power, reliability and stability of supply, his party also emphasizes the economic calculation of each available option.

“So we are open to all energy supply options with a note, power adequacy, reliability, stability and of course the economic calculation is in line with the interests of PT Vale and also its partners,” said Bernardus.

Previously, PT PLN (Persero) ensured that it would meet all electricity needs for the mineral processing and refining industry (smelters) in Sulawesi.PLN’s commitment was again conveyed in the ‘Customer Smelter and Stakeholder Gathering’ event held at the Claro Hotel, Kendari, Southeast Sulawesi on Tuesday (8/6).

PLN’s Director of Commerce and Customer Management, Bob Saril, stated that the smelter industry is a nickel downstream which requires a large amount of electrical energy and PLN is ready to fulfill it.

To date, there are 61 potential customers for the mineral processing and refining facility (smelter) project in Sulawesi whose electricity needs reach 7,184 megavolt amperes (MVA).

“PLN as a company entrusted with the mandate in the electricity sector in Indonesia has an obligation to meet electricity needs and provide the best service for all customers, including customers of the smelter industry,” said Bob.

Bob hopes that PLN can serve and provide reliable, quality and competitively priced electricity for smelter companies, as well as provide innovative products and services such as total electricity solutions and Renewable Energy Certificates (REC).

“The cooperation between PLN and the smelter industry is expected to create jobs and encourage the national economy, especially in Sulawesi,” he said.

INCO itself targets the final decision to be made early next year.In addition, the construction of the PLTG for the Bahodopi Smelter, Central Sulawesi is also one unit.

“The construction of this PLTG is an integral part of the smelter construction. So it will be decided in the FID process as well. So it is impossible for the PLTG to be built if the decision to build the smelter has not been taken,” Bernardus told Kontan.co.id.

He continued, with these conditions, the decision to build a PLTG, whether carried out by partners or by using a third party, will still be reviewed first.

Bernardus said, there is no certainty that the construction of the PLTG will go through a tender or a third party.

“It depends on the agreement between Vale and partners later. What is currently underway is a request for proposal (RFP) to obtain data and information that will be used to complete the study,” added Bernardus.

Source:https://industri.kontan.co.id/news/penyediaan-listrik-smelter-bahodopi-vale-indonesia-inco-buka-semua-opsi