MIND ID Accelerates $2 Billion Nickel Downstream Project in Morowali

The construction of a High Pressure Acid Leaching facility in Sambalagi, Morowali, Central Sulawesi, is being accelerated by PT Vale Indonesia to strengthen the national electric vehicle ecosystem. The project, part of the Indonesia Growth Project Morowali valued at around US$2 billion, is scheduled to reach its first mechanical completion by the end of 2026. The high-tech nickel processing facility, owned by a member of the state-owned mining holding company MIND ID, is designed with three production lines. The arrival of key components, including an autoclave, marks significant progress in efforts to increase mineral added value and expand the domestic battery industry supply chain. Investment and Downstream Minister Rosan Roeslani emphasised the strategic importance of this move for national resource sovereignty. He stated that the Vale downstream project sets a new standard for international collaboration aligned with national interests, namely building resource sovereignty, creating jobs, and generating high added value that supports the Net Zero Emissions agenda. Rosan added that accelerating downstream processing through the development of nickel-based industrial estates is a crucial part of the government’s strategy to support the energy transition. The development of this processing sector is also expected to have a direct economic impact on local communities through job creation and the strengthening of micro, small, and medium enterprises around the industrial area. Mining and energy analyst Ferdy Hasiman expressed support for the downstream initiative, noting that most mining companies’ capital expenditure is currently directed towards HPAL construction as these facilities will form the backbone of the electric vehicle ecosystem. He observed that MIND ID, through Vale, is among the most aggressive in developing such projects. Ferdy explained that consistent investment in nickel processing facilities is crucial to maintaining Indonesia’s competitiveness in the global market, adding that the sustainability of downstream projects is vital for maintaining investment momentum, especially as some private nickel companies have been less aggressive in the past two years, possibly due to regulatory dynamics. The downstream project is believed to be capable of significantly absorbing local labour while simultaneously encouraging the growth of a domestic supply chain involving local businesses in Central Sulawesi.