Vale Indonesia Targets 70,800 Tons of Nickel Production in 2024
Vale Indonesia has set its nickel production target at 70,800 tons for the year 2024, maintaining a stable output compared to the previous year's production of 70,728 tons. This announcement was made in Jakarta by the company's Head of Communication, Bayu Aji.
Despite the fluctuating prices of nickel in the market, Vale Indonesia reported a positive performance in 2023 and continues to focus on operational efficiency and sustainable nickel processing. The company achieved a notable increase in production in 2023, reaching 70,728 tons of nickel in matte, which marked an 18% rise from the 60,090 tons produced in 2022. This recent figure is the highest production output over the last two years.
Following a 14% share divestment to the Indonesian Mining Industry Holding MIND ID, Vale has accelerated the development of three significant nickel downstream projects, totaling an investment of approximately $9 billion. These projects are positioned in Sorowako, Bahodopi, and Pomalaa, aiming to enhance the company's nickel production capacity significantly.
The projects include the Sorowako Limonite project valued at $2 billion, the Bahodopi Smelter at $2.5 billion, and the Pomalaa Smelter at $4.5 billion. Combined, these ventures are expected to yield an additional 165,000 tons of nickel products.In detail, the Pomalaa Smelter Project, which is currently under construction, is slated to produce 120,000 tons of nickel. Its development stages involve land clearing and the establishment of essential facilities such as the Pomalaa construction office and a training center.
For the Morowali Project, Vale has undertaken preparatory studies and construction efforts geared towards mining development and port construction, with an overall investment reaching $2.5 billion. The Sorowako project, still in the location study phase, represents an investment of approximately $2.1 billion.
The future of these expansive projects hinges on the issuance of the Special Mining Business License (IUPK) by the Indonesian government, a crucial step that Vale Indonesia eagerly anticipates to secure its nearly $9 billion investment in the country's nickel sector.
