Vale affirms mining industry must be solution amid nickel price pressures
PT Vale Indonesia Tbk has reaffirmed its commitment to making the mining industry a solution for Indonesia amid global nickel price pressures and scrutiny of environmental impacts. The statement was conveyed by management during a Breakfast Discussion with media in Makassar on Monday, 2 March 2026, in response to price fluctuations and industry challenges throughout 2025.
Throughout 2025, the company recorded nickel matte production of 66,848 tonnes through November, an increase of 3 per cent year-on-year, with total revenues reaching US$902 million. Management cited this achievement as evidence of operational resilience amid pressing market conditions.
Endra Kusuma, Head of External Relations Regional and Growth at PT Vale, stated that performance stability was the result of the company’s long-term investment and commitment. “Industrial resilience is not built in just one season of high prices. This is the result of consistent investment, operational discipline, and long-term commitment, particularly one that impacts society, the environment, and the world,” he said.
The company is also continuing development of the Indonesia Growth Project (IGP) as part of the national downstream agenda. The Pomalaa project, valued at approximately US$4.5 billion, has achieved more than 65 per cent construction progress and recorded its first nickel ore sales in late February 2026. With storage capacity of up to 4 million wet metric tonnes and an initial production target of 300,000 tonnes of limonite per month, the project is projected to strengthen Indonesia’s domestic nickel supply chain.
Meanwhile, the Morowali project, with an investment value of US$2 billion, has reached nearly 99 per cent completion and recorded initial sales of 2.2 million tonnes of ore in early 2026. In Sorowako, the US$2.2 billion limonite development continues. The total integrated investment approaches US$9 billion to support Indonesia’s position in the global electric vehicle battery supply chain.
From an environmental perspective, by the end of 2025 more than 50 per cent of mining operations areas have been reclaimed in stages, totalling 3,863 hectares. Sorowako operations are supported by three hydroelectric power plants with a capacity of 365 MW and more than 100 settling ponds to maintain water quality.
Vanda Kusumaningrum, Head of Corporate Communication at PT Vale, reaffirmed the company’s commitment to sustainability. “Environmental issues cannot be answered defensively. They must be answered with data, with actions, and with transparency,” she said.
The company also noted that more than 99 per cent of its workforce comprises Indonesian citizens, with involvement of local labour and contractors in projects at Pomalaa, Morowali, and Sorowako.
Management believes that downstream activities are not merely about increasing production, but also about creating added value in the country and strengthening the national economy sustainably.