PT Vale Indonesia Tbk (INCO) is exploring potential investment in a high-pressure acid leach (HPAL) nickel smelter in Sulawesi. The estimated cost is IDR 30 trillion (around USD 1.91 billion), the Ministry of Investment said on Monday (18/3/2024).

The "SOA HPAL" plant will be the company's third project to convert nickel ore into mixed hydroxide precipitate (MHP).

The MHP material is used to make electric vehicle (EV) batteries, according to presentation materials shown by Indonesian Investment Minister Bahlil Lahadalia.

A spokesperson for Vale Indonesia declined to comment, according to a Reuters report following the news.

The ministry said the INCO-listed smelter could have an annual production capacity of 60,000 metric tons (MT) of nickel at MHP. Bahlil added that INCO is completing the final stages of exploration and will partner with a car manufacturer.

INCO already has two HPAL plants under construction in Pomalaa and Sorowako, Sulawesi. Both projects are in partnership with Zhejiang Huayou Cobalt.

Last month, state-owned mining holding company MIND ID, or Mineral Industry Indonesia, agreed to acquire a 14% stake in Vale Indonesia (INCO) from Vale Canada and Japan's Sumitomo Metal Mining to become a major shareholder.

Image source: REUTERS / Ajeng Dinar Ulfiana
Source: https://investor.id/market/356826/penambang-nikel-vale-berencana-bangun-pabrik-hpal-rp-30-triliun