Government Support Needs Government Support For US$5 Billion Nickel Smelter Project In Southeast Sulawesi, Vale And Huayou Will Have A Capacity Of 120,000 MT Nickel Per Year

Illustration. (Photo: Doc. Antara/Vale Indonesia)

JAKARTA - Integrated nickel mining and processing company PT Vale Indonesia Tbk (INCO) hopes for strong support from the Indonesian government regarding investment certainty, especially regarding licensing. This refers to Vale's collaboration with a cobalt supplier company from China named Zhejiang Huayou to develop a nickel smelter project in the Pomalaa Block, Kolaka Regency, Southeast Sulawesi (Sultra).

The investment for this nickel smelter project is close to US$5 billion. "Currently, a series of activities for the project are underway," said Vale Indonesia President Director Febriany Eddy in a statement quoted by Antara, Tuesday, June 21.

If the development plan in the Pomalaa Block is in accordance with the agreement with Huayou, Vale will adopt and implement the High Pressure Acid Leaching (HPAL) process, technology and configuration. This technology has been proven to process low grade ore to produce Mixed Hydroxide Precipitate (MHP) products with a potential production capacity of up to 120 thousand metric tons of nickel per year. Vale and Huayou have strengthened their commitment and solidity so that the nickel smelter project in the Pomalaa Block can be realized immediately. and operate in a spirit of sustainability.

These two companies share the same philosophy, especially regarding the commitment to sustainable business practices, prioritizing environmental, social, and best governance or ESG management. The specifications for the project in Pomalaa have been agreed to apply world-class ESG standards.

Febriany emphasized that Vale is committed to maintaining the principle of mineral conservation through optimizing the use of nickel ore in the Pomalaa Block, Kolaka Regency, Southeast Sulawesi, which is also in line with the company's commitment to sustainable mining activities. "We are committed to minimizing the project's carbon footprint. there will be the use of coal. It has become a commitment to decarbonization," he said