Vale’s Sorowako Nickel Matte Production Unaffected by RKAB Quota Cuts
Sat 07 Mar 2026, 10:13 AM
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PT Vale Indonesia Tbk has announced that nickel matte production at its Sorowako smelter in South Sulawesi remains in line with projections and has not been affected by the recent cuts to the Work Plan and Budget (RKAB).
The RKAB reductions were implemented by the Ministry of Energy and Mineral Resources (ESDM) to trim Indonesia's nickel output, with the goal of bolstering nickel commodity prices in the international market.
"To date, the nickel matte production plan remains completely unaffected and is still in accordance with our forecast," said Budiawansyah, Director and Chief Sustainability and Corporate Affairs Officer of Vale, during an Iftar event held in Jakarta on Friday.
Budi explained that the production plan at the Sorowako smelter remains undisturbed because the government granted 100 percent approval for Vale’s RKAB regarding its Sorowako operations.
Vale’s current focus has shifted toward ensuring the nickel ore supply for its High-Pressure Acid Leaching (HPAL) smelter, which is currently under construction in Pomalaa, Southeast Sulawesi.
Budi noted that, barring any obstacles, the Pomalaa HPAL smelter project is expected to reach mechanical completion by August 2026.
"Production is set to ramp up in the second half of that year. If we target August, then the ore supply to support that must be available about two to three months prior," Budi stated.
Regarding these requirements, Vale has communicated with the Directorate General of Minerals and Coal (Minerba) at the Ministry of ESDM to propose a revision to Vale’s 2026 RKAB.
"The Director General (Tri Winarno) and his staff fully understand this, as nickel downstreaming is our commitment to the government," he added.
He expressed hope that the government would approve the 2026 RKAB revision to support the operations of the Pomalaa HPAL smelter. Budi is aiming for the revision to be finalized by June, or even earlier.
"We have already prepared several drafts for the upcoming addendum or revision. We will see, based on the regulations, whether it will be opened in June or if it can be done sooner," Budi concluded.
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