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MINING COMPANY-JAKARTA. After the divestment of 14% of shares to the Indonesian Mining Industry Holding MIND ID was agreed upon, PT Vale Indonesia Tbk (INCO) will accelerate the supervision of three nickel downstream projects worth up to US$ 9 billion with several partners.
MIND ID had to disburse about US$ 300 million to take over 14% of INCO's shares. Thus, MIND ID will hold about 34% of INCO's shares, Vale Canada Ltd 33.9%, and Sumitomo Metal Mining 11.5%. About 20.6% of the shares will be held by the public.
“The funds (from the divestment) are being sold to the shareholders. As for us, the commitment remains the same, the projects in Central, Southeast, and South Sulawesi will be carried out. It requires costs,” said Head of Communications PT Vale Indonesia , Bayu Aji at the Mining for Journalist event organized by Perhapi in Jakarta, Thursday (29/2).
For information, INCO is working on three jumbo projects with a total investment of US$ 9 billion or IDR 140 trillion (with an exchange rate of IDR 15,600 per US dollar). The three projects are Sorowako Limonite worth US$ 2 billion, Smelter Bahodopi US$ 2.5 billion, and Smelter Pomalaa US$ 4.5 billion.
If these three projects are combined, Vale can produce 165,000 tons of nickel products.
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Specifically, the Bahodopi and Pomalaa smelters will produce Mix Hydroxide Precipitate (MHP) and Mix Sulphide Precipitate (MSP) which will become raw materials for battery components in electric cars.
One of the projects that will be a significant milestone for Vale's future business is the High Pressure Acid Leaching (HPAL) Smelter in the Pomalaa Block, Kolaka Regency, Southeast Sulawesi.
Through a partnership with Zhejiang Huayou Cobalt Co Ltd, Vale Indonesia is building a project with a total investment package consisting of an HPAL plant and mine reaching IDR 67.5 trillion. The project, which will produce 120,000 tons of nickel in Mix Sulphide Precipitate (MSP) per year, involves 12,000 workers for construction.
It's no wonder that this project has become a National Strategic Project (PSN) and is referred to as the largest HPAL project.
In the future, Bayu revealed, Vale and the Indonesian Government have already opened discussions regarding the creation of further added value for nickel downstream, for example, the results of the Reduction Kiln-Electric Furnace (RKEF) smelter in Southeast Sulawesi can be further processed into stainless steel products.
“There have been discussions in that direction, but of course it takes time. If Vale has to go step by step, the process to get there is still far. At this time, how our smelter project is established,” he concluded.
In addition to focusing on developing smelters, INCO is also actively implementing a commitment to reduce carbon emissions. In its roadmap, Vale Indonesia has prepared several strategies consisting of two paths.
First, direct efforts to reduce emissions, for example by replacing coal and diesel consumption, with other lower-emission energy sources such as gas or biomass. Currently, Vale is also using an electric boiler and B30 at the Sorowako plant.
“For the use of gas in this case LNG we have already studied. Then can it also be replaced with biomass, this study is also ongoing,” he explained.
Second, offset emissions by planting trees and re-greening most of the former mining land area.
