PT Vale Indonesia (INCO) is setting its sights on operationalizing its nickel processing plant in Pomalaa, Southeast Sulawesi by 2026 as part of the company’s strategy to expand its nickel processing capabilities in Indonesia, fueled by growing global demand for nickel in electric vehicle batteries.
INCO’s President Director, Febriany Eddy, revealed that the construction progress of the Pomalaa smelter is expected to reach approximately 20 percent by the end of 2024, with full-scale operations slated for the first quarter of 2026. The smelter is expected to have a production capacity of up to 120,000 tons.
“The goal for the Pomalaa smelter is to hit around 20 percent progress by the end of this year, and we aim to start production in the first quarter of 2026,” Febriany said as quoted CNBC Indonesia on Friday, August 23, 2024.
PT Vale Indonesia is undertaking three major smelter projects: High Pressure Acid Leach (HPAL) project in Pomalaa, Southeast Sulawesi; a nickel matte smelter project in Sorowako, also in South Sulawesi; and a ferronickel smelter project in Bahodopi, Central Sulawesi.
The total investment for these three smelter projects is estimated to range between US$8.6-9 billion (Rp143 trillion).
The Pomalaa smelter project is being developed in collaboration with Zhejiang Huayou Cobalt Co., while the Morowali smelter project is partnered with Shandong Xinhai Technology Co., Ltd (Xinhai). Additionally, the Sorowako smelter project is also in partnership with Zhejiang Huayou Cobalt Co.
“Our existing plant in Sorowako has been in operation for quite some time, and we are continuously expanding. We’re also launching new Greenfield projects in Bahodopi and Pomalaa, with another new project planned for Sorowako,” Febriany noted.
These expansion projects are driven by the recent surge in demand for nickel, particularly for electric vehicle (EV) batteries. Nickel plays a crucial role in supporting EV battery production, and the forecast for nickel demand looks quite promising.
“This presents a tremendous opportunity for Indonesia, a country rich in nickel resources,” Febriany said.
She further highlighted that PT Vale Indonesia, as a prominent nickel company, was recently granted an extension of its Special Mining Business License (IUPK) by the government.
With substantial land holdings, the company has a moral responsibility to develop these resources plans to take an aggressive approach toward future growth.
