JAKARTA - PT Vale Indonesia Tbk (INCO) is eyeing funding worth US$ 1.2 billion which is planned to be carried out in stages.
Vale Indonesia's Head of Corporate Finance & Investor Relations, Andaru Brahmono Adi, said the loan would be used by Vale to finance three nickel mining projects with High Pressure Acid Leaching (HPAL) technology.
"So if the external funding is more towards financing our projects," said Andaru, Friday, July 18.
He said the funding of 1.2 billion would come from a bank loan worth 500 million US dollars in early 2026. In addition, Vale will issue debt securities or bonds to obtain funding of around 500 million to 700 million US dollars by 2027.
"There is a possibility that we will enter the bond market worth around 500 million to 700 million US dollars. So the total is 1.1-1.2 billion US dollars," Andaru continued.
On the same occasion Andaru also straightened out the previous report which said that Vale would issue bonds of USD 500 million in 2026. According to him, this figure is still included in the company's plan but the funding structure may come from bank loans.
"I may all clarify here, we are still considering the structure. But the possibility of the $500 million figure for next year is correct. But the structure may be more towards bank loans, not bond," said Andaru.
Andaru also explained that a number of projects that will be injected with capital from the loan include nickel mines and HPAL nickel factories in Pomalaa, Southeast Sulawesi, which are the result of collaboration with Huayou Cobalt Co and Ford Motor Company.
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The second project to be financed is the HPAL smelter project in Bahadopi, Morowali, Central Sulawesi in collaboration with GEM Co Ltd.
Finally, the HPAL Sorowako Limonite Project in Sorowako, South Sulawesi, which was also worked on with Huayou.
"Currently we are still building 3 mines, we own 100 percent. Bahodopi will start walking this year. Then Pomalaa starting next year. So actually the funding is to finance our mining projects," he said.
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