Vale‘s (NYSE: VALE) Indonesian subsidiary and GEM Co., a Chinese battery-metal producer, have signed a project investment cooperation framework agreement to establish a high-pressure acid leach (HPAL) facility in Indonesia’s central Sulawesi province.
The US$1.4-billion plant will process nickel laterite ore from PT Vale into 66,000 tonnes of mixed hydroxide precipitate annually.
According to GEM, the plant will adhere to zero-carbon and intelligent design principles.
The investment includes US$40 million for a research and development centre for knowledge transfer and local talent development, US$30 million for an “ESG compound” featuring green landscaping, employee dormitories, domestic water supply, and waste treatment, and US$10 million for community development and public facilities.
“By integrating advanced technology, eco-friendly practices, and a commitment to net-zero production, we are shaping a future where Indonesia is recognized as a leader in sustainable industrial development,” PT Vale CEO Febriany Eddy said in a release.
Indonesia accounts for more than half of global nickel production and has been seeking foreign investment in its processing industry.
GEM will own up to a 25% stake in the project, the Vale unit will hold 30%, and a third party will be introduced for the remaining share.
GEM and PT Vale will also consider building downstream anode and precursor plants.
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