Green Smelter Project Groundbreaking In Morowali, Coordinating Minister For Economy Airlangga: Target To Complete In 2.5 Years

Coordinating Minister for the Economy Airlangga Hartarto (Photo:

JAKARTA - The integrated low-carbon nickel mining and processing project of PT Vale Indonesia Tbk (PT Vale) and PT Bahodopi Nickel Smelting Indonesia (PT BNSI) has passed its groundbreaking.

The laying of the first stone was carried out by the Coordinating Minister for the Economy Airlangga Hartarto. Where, the mining location is in Bungku Timur and Bahodopi Districts and the location of the processing factory is in Sambalagi Village, Bungku Pesisir District, Morowali Regency, Central Sulawesi.

"I hope this will be followed by the laying of the next stones, God willing, it can be completed in 2.5 years. I see the team's ability and enthusiasm, where this project looks neat and orderly, I believe this is part of good management," said Airlangga quoted Antara, Friday, February 10.

The total investment cost for the project reaches IDR 37.5 trillion with a production capacity of 73 thousand tons per year.

The nickel smelter, which is one of the national strategic projects, uses rotary kiln electric furnace (RKEF) technology and is also supported by a power source that comes from natural gas.

This will reduce carbon emissions from overall project operations with a target of up to 33 percent by 2030.

"This is the first green smelter factory that I have seen. Based on LNG gas, of course, we ask for support from the Energy Commission (DPR RI) that this is green energy, green product, and green mining," explained Airlangga.

This project is expected to boost economic growth in Central Sulawesi Province in particular and Sulawesi Island in general.

The existence of this project also helps absorb around 12 thousand to 15 thousand workers during the construction period and around 3 thousand workers during operation.

"There is a multiplier effect that the community gets from this activity, and the community can be involved in the industrial development ecosystem in Morowali," he said.

He believes that the fast industrial growth will be followed by an increase in people's welfare.

"I urge corporations to send as many young people around here for education and training, so that later they can work at this company," said Airlangga.

On the same occasion, the Bahomotefe Port groundbreaking was also carried out, which will support inter-regional connectivity, so as to be able to explore the logistics chain for mining materials that have been given downstream added value.