PT Vale Indonesia, a subsidiary of Brazilian mining company Vale, has entered into a cooperation agreement with Chinese firm Zhejiang Huayou Cobalt and PT Huali Nickel Indonesia. Together, they plan to construct high-pressure acid leaching (HPAL) facilities in Malili, East Luwu, South Sulawesi, Indonesia.
The objective of this partnership is to establish facilities capable of producing 60,000 tonnes of nickel and approximately 5,000 tonnes of cobalt annually in the form of mixed hydroxide precipitate (MHP) products. These MHP products will subsequently be processed for use in electric vehicle batteries.
Febriany Eddy, CEO of PT Vale Indonesia, stated, “This cooperation is in line with Indonesia’s vision to build a domestic EV ecosystem and makes PT Vale an important contributor toward addressing the world’s decarbonization challenge, with an investment that will generate local economic benefits and ensure the optimal utilization of Indonesia’s nickel resources.”
Construction of the Malili HPAL project is anticipated to commence immediately upon securing all the necessary permits.
Chen Xuehua, Chairman of Huayou, remarked, “This cooperation is another perfect combination of Huayou Cobalt’s world-leading, green, and low-carbon HPAL technology, Indonesia’s rich nickel resource advantage, and PT Vale’s sustainable mining practices. Through the cooperation, Huayou will realize low-carbon, green, and sustainable resource development through rigorous ESG practices, and add strength to the development of the new energy industry and also contribute to the economic and social development of Indonesia, as well as the global EV industry and its supply chain.”
This latest initiative follows a previous agreement signed by PT Vale and Huayou with American automaker Ford Motor for nickel production from the Pomalaa HPAL facility in March of this year. Construction on the Pomalaa facility commenced in November of the previous year, and it is located in Kolaka Regency, Southeast Sulawesi. Once completed, the project is expected to produce up to 120,000 tonnes of nickel annually.
In February of this year, PT Vale initiated construction on a nickel mining and processing project in Morowali, Central Sulawesi.
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