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Vale Indonesia optimistic about projects despite MIND ID criticism
Nickel mining firm PT Vale Indonesia has defended its commitment to developing Indonesia’s downstream industry against harsh criticism.
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A worker operates a furnace on March 30, 2019, part of the nickel smelting process at Indonesian mining company PT Vale Indonesia's smelting plant in Soroako, South Sulawesi. (AFP/Bannu Mazandra)
PT Vale Indonesia has defended its commitment to developing Indonesia’s downstream industry against harsh criticism.
Vale Indonesia head of communications Bayu Aji explained that “despite existing dynamics,” the nickel mining company was optimistic about the progress on its three flagship projects.
“Currently, we are focused on completing these three projects and publishing their progress on our website and on social media,” he told The Jakarta Post on Friday.
Vale Indonesia’s statements follow harsh criticism from one of its shareholders, state-owned mining holding company MIND ID, concerning the company’s three ongoing projects: two nickel smelter facilities that cost US$2 billion and $2.5 billion in Sorowako and Bahodopi, respectively, both located in South Sulawesi, as well as the $4.5 billion Pomalaa project in Central Sulawesi.
“If [Vale’s] development commitments are not fulfilled in accordance with the work contract, it is necessary to [process] relinquishment in the areas related to the projects,” MIND ID president director Hendi Prio Santoso told House of Representatives Commission VII, which oversees energy and mineral resources, on Tuesday.
Expected to be one of the largest nickel smelters in the world, the high-pressure acid leaching (HPAL) Pomalaa project is estimated to generate 120,000 tonnes of nickel per year. It is targeted to produce mixed hydroxide precipitate (MHP), which is generally used to manufacture batteries for electric vehicles (EVs).
Meanwhile, the HPAL nickel smelter in Sorowako, construction of which is planned to be completed in 2025, is estimated to have a production capacity of 60,000 tonnes in MHP.
