Jakarta (Indonesia Window) – An Indonesian mining company, PT Vale Indonesia, is building a nickel smelter in its mining area in Morowali district, Central Sulawesi province, to realize investment commitments according to the work contract amendment.
“PT Vale together with two partners namely Taiyuan Iron & Steel (Group) Co. and Shandong Xinhai Technology Co. signed an agreement document for a nickel processing facility development project in Central Sulawesi last June,” Vale Indonesia’s Director Dani Widjaja in his written statement on Monday (Nov. 8).
According to him, the project study is nearly complete and the permit process is currently being finalized.
The smelter construction project was expected to be a profitable investment as it would increase the value of positive returns for shareholders.
The nickel processing facility in Central Sulawesi will have eight Rotary Kiln-Electric Furnace (RKEF) lines with an estimated production of 73,000 metric tons of nickel per year, as well as other supporting facilities.
The project includes Vale’s work contract covering an area of 16,395 hectares in Block 2 and Block 3 Bahodopi, Morowali district with two main parts, namely mining and smelter construction which will be operated by a joint venture formed by Vale, Tisco and Xinhai.
“The final study is being made to ensure that the mining activities would be carried out safely, economically, and confirm the availability of nickel ore material supplies to the processing plant,” Dani said.
Further studies are also being carried out by partners and Vale for the construction of a nickel processing plant and its supporting facilities in Sambalagi village, Morowali district.
The ore materials from the mining area in Bahodopi Block 2 and Block 3 will be transported by sea to the factory site in Sambalagi. The environmental permit is currently under process.
Dani added that apart from the smelter in Central Sulawesi, Vale is also building a limonite ore processing plant in Pomala sub district, Kolaka district, Southeast Sulawesi province using High Pressure Acid Leaching (HPAL) technology which will be operated by a joint venture.
“In that district, Vale manages a contract of work area of 20,286 hectares,” he said.
Reporting by Indonesia Window