Vale (INCO) Outlines Major Expansion Plans, Preparing Rp19.29 Trillion in Capex
PT Vale Indonesia Tbk. (INCO) is preparing capital expenditure (capex) of up to US$1.1 billion, or approximately Rp19.29 trillion (assuming an exchange rate of Rp17,540), for 2027, which will mark the peak period of the company’s expansion.
Vale Indonesia Director Rizky Andhika Putra stated that the company currently possesses a standby funding facility in the form of a sustainability-linked loan worth US$750 million. Nevertheless, the company remains open to additional funding opportunities to finance its entire expansion roadmap.
According to Rizky, the capex requirements for the issuer, which operates under the MIND ID holding company, are expected to reach nearly US$700 million in 2026. This budget covers mine development, High-Pressure Acid Leaching (HPAL) projects, and sustaining capex needs.
“The peak will occur in 2027, representing the largest phase of our expansion, reaching up to US$1.1 billion, as this includes significant investments in our new smelters, specifically the HPAL facilities,” Rizky said during a public expose live session on Thursday (10/09/2026).
Looking further ahead to 2028, the state-owned nickel mining company still allocates approximately US$800 million in capex to support the development of HPAL projects in Sorowako.
On the operational side, Vale is optimistic about achieving a nickel matte production target of 67,645 metric tonnes in 2026. This confidence is supported by production performance in the first half of 2026, which successfully exceeded the production plan by approximately 1%.
Vale Indonesia Vice President Director Abu Ashar noted that the refurbishment of electric furnace number 3 was completed in June 2026, supporting operational stability for the second half of 2026. Furthermore, nickel grades from mining activities reached 1.82%, which he described as one of the highest levels in the last three years.
Abu explained that higher nickel grades provide opportunities for production optimisation, as the plant does not need to process larger volumes of material to produce the same output. With good ore supply conditions and stable plant operations, the company is optimistic about maximising nickel matte production in the second half of this year.
“We are very optimistic; the repair work has been completed, the nickel feeding grade from mining to the plant is quite good, and plant operations are stable, so we are confident in achieving our annual production target of 67,645 metric tonnes this year,” said Abu.