PT Vale Indonesia has signed an agreement with Chinese waste recycling company GEM Co., Ltd to build a nickel processing and refining facility utilizing High-Pressure Acid Leaching (HPAL) technology.
The US$1.4 billion (Rp21.93 trillion) project will produce approximately 60,000 tons of Mixed Hydroxide Precipitate (MHP) annually.
The investment agreement was witnessed by Indonesian President Prabowo Subianto during his State visit to China over the weekend.
Prabowo highlighted this partnership as a commitment to advancing Indonesia’s green economy and bolstering downstream industries to meet global demand for high-value, sustainable MHP.
He emphasized Indonesia’s intention to align with China’s rise, contributing economically and culturally to the global landscape.
The investment allocation in this project includes three primary components:
- Research and Development Center – US$40 million for knowledge transfer and local talent development in Indonesia.
- Environmental, Social and Governance (ESG) Initiatives – US$30 million covering green landscaping, employee housing, domestic water supply, and waste management;
- Community and Public Facility Development – US$10 million dedicated to social infrastructure.
CEO of PT Vale Indonesia, Febriany Eddy, expressed the company’s goal of setting a new global standard in sustainable MHP production.
She emphasized that the project serves as a model for responsible resource management benefiting Indonesia and the world.
The HPAL smelter is expected to generate employment, attract new investments, and support local economic growth, aligning with Indonesia’s economic growth target of 8 percent.
GEM Co. Ltd Chairman, Kaihua Xu, said that this project is crucial for a cleaner future and represents a foundation for deeper cross-border cooperation in green innovation.
