PT Vale Indonesia Signs $1.4 Billion Deal with China’s GEM for Net-Zero Nickel Processing Plant
Nickel processing company PT Vale Indonesia Tbk (INCO) has officially signed a cooperation agreement with Chinese firm GEM, for the development of a net-zero nickel processing facility in Central Sulawesi. The signing took place in Beijing this week and was witnessed by Indonesian President Prabowo Subianto during his visit to China.
The $1.4 billion project aims to establish a High-Pressure Acid Leaching (HPAL) nickel processing plant, which will produce at least 60,000 tonnes of nickel annually in the form of Mixed Hydroxide Precipitate (MHP). This net-zero facility is intended to support Indonesia's sustainable resource management efforts while contributing to the global transition towards clean energy.
PT Vale CEO Febriany Eddy noted that the company is committed to accelerating growth through green principles and climate resilience. "Yesterday in Beijing, we signed an important cooperation agreement with GEM Co., Ltd. to establish a net-zero nickel production facility," Eddy stated. She emphasized that this partnership aligns with the company’s commitment to green growth and positions Indonesia as a global leader in the sustainable supply of high-quality nickel for battery raw materials.
The agreement includes not only the construction of the nickel processing plant but also a $40 million Research and Development Center to promote knowledge transfer and local talent development in Indonesia. An additional $30 million will be allocated for the establishment of an ESG Compound, including green landscaping, employee accommodations, and waste management facilities. Furthermore, $10 million will be invested in community development projects and public infrastructure.
PT Vale aims to increase nickel production fourfold over the next decade, addressing the growing demand for critical minerals for clean technologies, including Energy Storage Systems (ESS). "This cooperation demonstrates that economic progress and environmental sustainability can coexist," said Eddy. She also outlined PT Vale's role in the global energy transition, noting that the company's nickel products have one of the lowest carbon emission intensities in the nickel ore processing industry.
The newly signed agreement with GEM reinforces PT Vale's dedication to sustainable and responsible nickel production. The fourth production facility to be built under this partnership is designed to achieve net-zero emissions through advanced technology and collaborative learning with GEM. "This facility further emphasizes PT Vale's mission to lead in sustainable nickel mining and processing while setting a new standard for future growth with minimal carbon intensity," Eddy concluded.
