PT Vale Indonesia Tbk (INCO) is currently developing three nickel smelting and processing projects in Indonesia, with a total investment value of US$9 billion, equivalent to approximately Rp130 trillion. The facilities are being built in Central Sulawesi, South Sulawesi, and Southeast Sulawesi.

Vale Indonesia President Director Febriany Eddy shared the update during CNBC Indonesia’s Mining Zone program on Tuesday, April 8, 2025. “These three investments, together with partners, total US$9 billion, or roughly Rp130 trillion,” she said.

Green and Low-Carbon Economic Vision Drives Projects

Febriany emphasized that the three major projects are aligned with green economy principles and low-carbon energy. She stated, “We are currently implementing three strategic investment projects based on green economic downstreaming and low-carbon energy. These three projects are spread across three provinces—Central Sulawesi, South Sulawesi, and Southeast Sulawesi.”

Target Completion Dates Set for 2026 and 2027

According to Febriany, Vale targets two of the three projects to be completed by 2026, with the final project expected to be operational in 2027. “If everything goes smoothly, two out of the three projects will be completed next year, 2026. The last one will be completed in 2027,” she said.

Commitment to Downstreaming Since the Beginning

The company views the expansion as part of its long-standing commitment to downstreaming. “Downstreaming has actually been part of our identity. In our 56 years, we have never exported raw ore. So when the government initiated liberalization, we were certainly at the forefront in supporting it,” she added.

Breakdown of Vale’s Three Strategic Nickel Smelter Projects

The three projects include

1. Pomalaa, Southeast Sulawesi— A High Pressure Acid Leaching (HPAL) nickel smelter in collaboration with Zhejiang Huayou Cobalt Co. and Ford Motor Co. The facility will produce 120,000 tons per year of Mixed Hydroxide Precipitate (MHP).
2. Morowali, Central Sulawesi— A nickel smelter project in partnership with Shandong Xinhai Technology Co., Ltd. (Xinhai).
3. Sorowako, South Sulawesi—Another HPAL smelter, also developed in partnership with Zhejiang Huayou Cobalt Co.

PHOTO: PT VALE INDONESIA TBK

This article was created with AI assistance.