Good News, Vale Indonesia And China Invest Rp28 Trillion For Nickel Project In Central Sulawesi

JAKARTA - PT Vale Indonesia Tbk (PT Vale) in cooperation with partners from China invested USD1.94 billion (around Rp28 trillion) in Morowali Regency, Central Sulawesi Province in nickel ore mining and processing projects.

CEO of PT Vale Indonesia Tbk Febriany Eddy stated that he invested in nickel ore mining and processing project located in Bahodopi Village, because the dynamics of nickel business in Indonesia are growing very rapidly in the last eight years.

"This makes PT Vale more stable to take a position in the nickel industry map of the country as a nickel operator that prioritizes sustainable mining practices," he said, during a dialogue with the Governor of Central Sulawesi Longki Djanggola, in the office of the Governor of Central Sulawesi, in the Office of the Governor of Central Sulawesi, Palu, as quoted from Antara, Tuesday, May 25.

He explained that currently, the concession area of PT Vale Indonesia Tbk in Central Sulawesi covers a contract area of 22,699 hectares in Block 2 and Block 3 of Bahodopi Village.

"Our development project in the block consists of two main parts, namely mines and factories or what we commonly call smelters," he said.

Mining activities, he continued, will be operated with a mine opening investment value of 140 million U.S. dollars. As for nickel ore processing activities, it plans to build a smelter with an investment value of USD1.8 billion.

"For the development of smelters, PT Vale Indonesia Tbk has established a new business entity, namely PT Bahodopi Nickel Smelting Indonesia (BNSI) which has now obtained an Industrial Business License (UII). This factory is planned to be built and operated with our partners from China," he also said.

Febriany said the Bahodopi project has been proposed as part of a national strategic project for 2021. PT Vale's mining activities in Bahodopi Block will absorb approximately 900 workers.

"As for the activities in the smelter, we estimate the labor needs reached 11,400 people in the construction period, and about 3,700 people when the smelter was already in operation," he said.

He hopes that the presence of PT Vale in Central Sulawesi in general and in Morowali, in particular, can contribute to the improvement of the economy of the surrounding and regional residents.