Jakarta, CNBC Indonesia – PT Vale Indonesia (INCO) has finally partnered with a new partner from China, namely Zhejiang Huayou Cobalt Company Limited (Huaoyu) to develop a nickel processing and refining facility (smelter) project in Pomalaa, Kolaka Regency, Southeast Sulawesi. This is after Sumitomo Metal Mining Co. Ltd. (SMM), a metal processing company from Japan, decided to leave the project.
PT Vale Indonesia President Director Febriany Eddy said that this new partner from China came with a low-carbon agenda by not using coal-fired steam power plants (PLTU).
So this is proof of the alignment of sustainability commitments which is very important for Vale. Moreover, Huayou itself has proven its track record in the construction and operation of HPAL in Indonesia.
“Vale has completed the FCA signing with Huayou to build the Pomalaa HPAL project. If you see this announcement, it should be very positive not only for INCO but also the Pomalaa community, the Regional Government, and the nation,” he said in Jakarta, Thursday (28/4/2022). ).
The signing of the framework cooperation agreement between the two parties was carried out on Wednesday (27/4/2022). The parties have agreed in principle on the main issues related to the Pomalaa HPAL Project, which include:
First, Huayou will build and implement the Pomalaa HPAL Project, and PT Vale will have the right to acquire up to a 30% stake in the Pomalaa HPAL Project.
The Pomalaa HPAL Project itself will adopt and implement the proven Huayou HPAL process, technology and configuration to process low grade limonite and saprolite ores from PT Vale’s Pomalaa mine, to produce Mixed Hydroxide Precipitate (MHP) Products with a potential production capacity of up to 120,000 metric tons of nickel per year.
Second, the company will work together to minimize the project’s carbon footprint and furthermore the Parties agree not to use the captive coal-fired power plant as a power source in any form for the operation of the Pomalaa HPAL Project.
The parties will sign definitive agreements no later than six months after the signing of this FCA. Some of the construction that has started through preliminary activities carried out by PT Vale will continue to run and even accelerate with this agreement with the aim of completing construction within a period of three years.
(pgr / pgr)
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