PT Vale Indonesia, part of the global mining giant Vale based in Brazil, has struck a deal with the Chinese company Zhejiang Huayou Cobalt and PT Huali Nickel Indonesia. They plan to construct state-of-the-art facilities for high-pressure acid leaching (HPAL) in Malili, situated in East Luwu of South Sulawesi, Indonesia.
The goal is to create a setup capable of producing 60,000 tonnes of nickel and about 5,000 tonnes of cobalt each year. These metals, in the form of mixed hydroxide precipitate (MHP), will be key inputs for manufacturing batteries for electric vehicles (EVs).
PT Vale Indonesia’s chief, Febriany Eddy, highlighted that this collaboration mirrors Indonesia’s ambition to nurture a domestic ecosystem for EVs and positions PT Vale as a crucial player in tackling global decarbonization challenges. She also mentioned that this investment is expected to bring economic prosperity locally while making the most of Indonesia’s nickel deposits in a judicious manner.
The construction of the HPAL facility in Malili is on the cards, set to commence once all necessary permits are obtained.
Chen Xuehua, the head of Huayou, sees this joint effort as a blend of Huayou Cobalt’s top-tier, eco-friendly HPAL technology, Indonesia’s abundant nickel resources, and PT Vale’s commitment to sustainable mining. He believes that through this partnership, Huayou will contribute to low-impact, sustainable resource development aligned with strict ESG (Environmental, Social, and Governance) standards. This not only supports the growth of new energy sectors but also aids in the economic and social progress of Indonesia and the global EV market, including its supply chain.
This recent initiative comes on the heels of an agreement between PT Vale, Huayou, and the American car manufacturer Ford Motor regarding nickel production at the Pomalaa HPAL site, sealed this past March.
The Pomalaa project, which broke ground last November in Kolaka Regency, Southeast Sulawesi, is expected to churn out up to 120,000 tonnes of nickel annually upon completion.
Moreover, in February this year, PT Vale commenced work on a nickel mining and processing endeavor in Morowali, Central Sulawesi, marking another milestone in Indonesia’s commodities sector.
