Mining company PT Vale Indonesia is set to add a new partner for its High Pressure Acid Leaching (HPAL) smelter project in Sorowako, South Sulawesi, aiming to process limonite nickel ore.
The project, in collaboration with Zhejiang Huayou Cobalt Company, seeks a third partner meeting stringent ESG standards.
“This project is intended to have three participants. Currently, we only have two: Huayou and PT Vale,” CEO of PT Vale Indonesia, Febriany Eddy, told the 2024 Public Expose held online on Monday, August 26, 2024.
The HPAL smelter project in Sorowako is a joint venture between PT Vale Indonesia and Huayou. According to Febriany, Huayou will be responsible for securing the new partner. She emphasized that any prospective partner must meet certain criteria to be considered.
“The prerequisites we are looking for are companies with a good reputation, strong international ESG (Environmental, Social, and Governance) content, which are significant players in battery storage or electric vehicles (EVs),” Febriany said.
She added that the search for a third partner is ongoing, with expectations of positive developments soon.
“So far, many automakers have shown interest, but discussions have not yet been finalized. Once we have more concrete information, we will update the market,” she said.
Previously, in 2022, Vale estimated that the project would cost approximately US$1.8 billion (Rp26.82 trillion). Febriany clarified that this investment would cover the construction of the plant and its supporting infrastructure, excluding the mining operations.
The HPAL plant aims to process limonite nickel ore into Mixed Hydroxide Precipitate (MHP), with an annual production capacity of 60,000 tons of nickel. MHP can be further refined into components for batteries, including those used in electric vehicles.
Following positive feasibility studies conducted by Huayou, both parties agreed to strengthen their partnership by signing a Heads of Agreement at the Park Hyatt Hotel in Jakarta on Tuesday, September 13.
A key element of this collaboration is the shared commitment to achieve carbon neutrality by 2050 and to work together on minimizing carbon emissions.
Huayou is set to further discuss with Vale Indonesia the exploration of low-carbon energy alternatives. Febriany underscored that this development project exemplifies Vale’s commitment to sustainable mining and aligns with the Indonesian government’s initiative to build an electric vehicle ecosystem in the country.
