PT Vale Indonesia Tbk (INCO) has revealed its target for the company's nickel plant in Pomalaa, Southeast Sulawesi, to be operational by 2026.

The company's President Director, Febriany Eddy, stated that the progress of the construction of the smelter or the nickel refining and processing facility in Pomalaa is expected to reach around 20% by the end of 2024, with the smelter aiming to commence operations in the first quarter of 2026.

"For the Pomalaa smelter, by the end of this year, it should be around 20%, and we hope to start production in the first quarter of 2026," Febriany shared with CNBC Indonesia in the Mining Zone program, as quoted on Friday (23/8/2024). The Pomalaa nickel smelter is targeted to handle up to 120,000 tons of production.

Vale has three significant smelter projects to build: the High Pressure Acid Leach (HPAL) project in Pomalaa, Southeast Sulawesi, the nickel matte smelter project in Sorowako, South Sulawesi, and the ferronickel smelter project in Bahodopi, Central Sulawesi.

Vale has previously indicated that the investment required to develop these three smelter projects could reach between USD 8.6 billion to USD 9 billion, equivalent to IDR 143 trillion (assuming an exchange rate of IDR 15,945 per USD).

The Pomalaa smelter project is being developed in collaboration with Zhejiang Huayou Cobalt Co., while the Morowali smelter project is a partnership with Shandong Xinhai Technology Co., Ltd (Xinhai). Additionally, the Sorowako smelter project also involves cooperation with Zhejiang Huayou Cobalt Co.

"Our existing plant in Sorowako has been in operation for quite some time. We are continuously expanding, but we are also embarking on Greenfield Projects, new projects in Bahodopi and Pomalaa. Additionally, there will be another project in Sorowako," Febriany explained.

She emphasized that this expansion is driven by the growing demand for nickel in electric vehicle (EV) batteries. The rising demand for nickel to support EV batteries presents a significant opportunity for Indonesia, which is rich in nickel resources.

“As a nickel company, PT Vale has recently been granted an extension of its Special Mining Business License (IUPK) by the government, with a substantial land area. We also have a moral responsibility to develop all these projects. Therefore, we will be aggressive in our future growth.”