Vale: Sorowako nickel matte production not affected by RKAB cuts

Jakarta (ANTARA) - PT Vale Indonesia Tbk said that nickel matte production at the Sorowako nickel smelter in South Sulawesi is still in line with projections and is not affected by cuts to the Work Plan and Budget (Rencana Kerja dan Anggaran Biaya, RKAB). The RKAB cuts are being implemented by the Ministry of Energy and Mineral Resources (Kementerian Energi dan Sumber Daya Mineral, ESDM) to reduce Indonesia’s nickel output, in the hope of lifting prices on the international nickel market. Budi said the Sorowako production plan is not disrupted, because the government granted 100 percent approval to Vale’s RKAB for Sorowako’s operations. Vale’s current focus is on nickel supply for the HPAL-based nickel smelter being built in Pomalaa, Southeast Sulawesi. Budi explained that, barring any obstacles, the HPAL project in Pomalaa will reach mechanical completion in August 2026. ‘In the second half of the year it will be ready to ramp up production. If we project August, that means about two to three months earlier, the ore supply to support that must also be available,’ he said. Regarding this requirement, Vale has communicated with the Directorate General of Mineral and Coal (Directorate General Mineral and Coal, Minerba) of the Ministry of ESDM to apply for a revision of Vale’s RKAB for 2026. ‘Director General of Mineral and Coal (Tri Winarno) and his team understand this well, because this is our commitment to the government on nickel downstreaming,’ he said. He hopes the government will approve Vale’s RKAB revision for 2026 to support the operation of the Pomalaa HPAL nickel smelter. Budi aims for the revision to be completed by June, or even earlier. ‘We have actually set up several draft addenda or revisions; we will see, according to the regulations, whether it will be opened in June or could be earlier,’ he said.