Vale's Three Mega Smelter Projects Worth Rp155 Trillion: Latest Updates
PT Vale Indonesia Tbk is preparing to enter a new phase of nickel downstream business development. The company is targeting the near-term operation of three mega downstream projects with a total investment value of approximately US8.7billion, oraroundRp155trillion(assuminganexchangerateofRp17, 860perUS).
Chief Sustainability & Corporate Affairs Officer of PT Vale Indonesia, Budiawansyah, detailed the three projects: the High Pressure Acid Leach (HPAL) project in Bahodopi, Morowali Regency, Central Sulawesi; the HPAL Pomalaa project in Southeast Sulawesi; and the Sorowako Limonite development in South Sulawesi. These projects are part of the Indonesia Growth Project (IGP), developed to fulfil the commitment for the extension of the Special Mining Business Permit (IUPK) while optimising the added value of national mineral resources.
For the IGP Bahodopi in Morowali, a significant milestone was recently achieved with the installation and inauguration of the autoclave for the HPAL facility. Developed in partnership with GEM and EcoPro, this project will supply raw materials for the battery industry with an investment value of US$2 billion. PT Vale will supply limonite ore from the Bahodopi Block mine. The mine has already commenced operations, with phase one construction 99% complete and employing approximately 1,979 operational workers. The HPAL plant, with a capacity of 66,000 tonnes of MHP per year, has reached 22% construction progress and is targeted for operation between 2026 and 2027, absorbing an estimated 1,600 workers. Supporting infrastructure includes a sulphuric acid plant, a 700-800 room worker camp, a nursery, and four completed settling ponds.
The IGP Pomalaa project, developed with Ford Motor Company and Huayou, is the most advanced, with an investment value of US$4.5 billion. The integrated mine is designed to produce 7 million WMT of saprolite and 21 million WMT of limonite annually, with mine construction at 60% and operations targeted for 2026. The HPAL plant, with a capacity of 120,000 tonnes of nickel in MHP, has reached 50% construction progress and is expected to employ 3,017 workers. Supporting facilities include a special port with nine jetties and a nursery with 3,500 seedlings.
The third project, the Sorowako Limonite HPAL plant in East Luwu, South Sulawesi, represents an investment of US$2.2 billion. It will process limonite ore into MHP for electric vehicle batteries. Construction of pipelines and the Feed Preparation Plant is ongoing, with operations expected to commence between 2027 and 2028. The mine is projected to produce 11.5 million WMT of limonite per year, with construction progress at 37% and 400 operational workers.