Vale Accelerates Three Nickel Smelter Projects of IDR 129 Trillion

Mining activities in Sulawesi.  GA Photo/Mohammad Defrizal

PT Vale Indonesia Tbk (INCO) is accelerating the completion of three nickel smelter projects worth US$ 8.6 billion or equivalent to Rp 129 trillion in 2026.

The three projects are the Bahodopi Morowali nickel smelter in Central Sulawesi worth US$ 2.3 billion, the Sorowako limonite nickel smelter in South Sulawesi worth US$ 1.8 billion, and the Pomalaa nickel smelter in Southeast Sulawesi worth US$ 4.5 billion.

Head of Communication of PT Vale Indonesia Tbk Bayu Aji said that the company continues to speed up the completion of the three projects so that they are completed in 2026 so that it will increase Vale’s production capacity.

“The planned production capacity of the Southeast Sulawesi Pomalaa smelter is up to 120,000 tons in mixed hydroxide precipitate (MHP) and Central Sulawesi’s Bahodopi Morowali is 73,000 tons of nickel in FeNi,” Bayu told Investor Daily recently.

Meanwhile, the limonite nickel smelter in Sorowako, South Sulawesi, Vale expects to produce up to 60,000 tons of nickel in MHP.

It’s just that, Bayu has not been able to name potential strategic partners who will work together on the Sorowako smelter project. “We can’t convey that yet. Later, when the time comes we will announce it,” said Bayu.

Meanwhile in the Pomalaa nickel smelter project, Bayu said, Vale had agreed to partner with a Chinese company, Huayou Cobalt Co., Ltd. and a company from the United States, Ford Motor Company Co.

Likewise with the nickel smelter project in Bahodopi Morowali. Bayu said the company had reached an agreement with companies from China, namely Taiyuan Iron & Steel (Group) Co Ltd (Tisco) and Shandong Xinhai Technology Co Ltd (Xinhai) through a joint venture company PT Bahodopi Nickel Smelting Indonesia (BNSI).

On the other hand, PT Vale Indonesia President Director Febriany Eddy confirmed that the company will continue to boost its mining business line to increase its capacity by 3% of world nickel production.

“I think decarbonization will create a lot of demand and this is an extraordinary opportunity. Moreover, Vale’s position has always been to be a sustainable mining and low carbon company,” said Febriany.

For this reason, the company will accelerate many downstream projects, including the three priority projects worth US$ 8.6 billion. This is evidenced by the two partners have started walking and one more partner is ready to follow.

“Essentially, we support government programs. Therefore, in the next few years, Vale will focus on three projects worth US$ 8.6 billion to be completed soon,” he said.

Image source >>> Mohammad Defrizal

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