Nickel mining company, PT Vale Indonesia Tbk (INCO) in collaboration with companies from Japan and China to develop nickel smelters in Indonesia with an investment of US$ 5 billion.
The amount of the jumbo investment is still being discussed between the two parties to calculate the investment portion of each company.
Vale Indonesia Deputy Director Febriany Eddy said the investment funds prepared will be used to develop two new smelters, and the development of one existing smelter.
Two smelters will be developed, namely in Bahodopi, Morowali (Central Sulawesi) and Pomalaa, in Kolaka, Southeast Sulawesi.
"So this is our partner, so it's not all Vale. We focus on expansion. In Bohodopi there will be mining and smelters, in Pomalaa there will also be smelters and mines," said Febriany on the sidelines of the Latin American and Caribbean Business Forum (Indonesia-Latin Indonesia American and the Caribbean / lNA-LAC), in Jakarta, Tuesday (10/15/2019).
For the smelter in Pomalaa, the company estimates an investment of US$ 2.5 billion (Rp35 trillion) is needed for the smelter, and a mine of around US$ 300 million (Rp4.2 trillion). While the project in Bahodopi is projected to require an investment of US$ 1.6-1.8 billion (Rp25 trillion), while for a mine around US$ 300 million.
As for expansion in existing projects, namely for Sorowako mining in Nuha, East Luwu, South Sulawesi, with a projected investment fund of US$ 300-400 million.
"We are working on this with partners, how much portion is still being discussed. The project has been determined, and the scale has also been done. Only now are negotiations with partners," he said.
It's just that it has not been revealed by Vale's partners for this project. The smelter project in Pomalaa is in the stage of commercial negotiations and alternative funding, as well as licensing.
"We hope that the permit can be obtained soon. Now it is still an EIA at MEF [Ministry of Environment and Forestry]. They are very helpful, even though there have been several revisions. Later after the EIA we can submit another permit, so that this last revision is hopefully no change so can be finalized, "he explained.
As for the Bahodopi project, Vale is currently unable to announce partners and is still focused on finalizing the negotiations.
"If the negotiation is a deal, we still have to have permission, hopefully if it goes well. So next year will be the same as Pomalaa," he said.
On the occasion of the Deputy Minister of Foreign Affairs of the Republic of Indonesia, Abdurrachman M. Fachir, said Vale did indeed get an investment commitment from one of the Brazilian companies, for the next 5 years amounting to US$ 5 billion. The investment commitment was expressed in between the Latin American and Caribbean Indonesian Business Forum.
In addition to Vale, this business forum will also produce a trade value of US$ 20 million.
So far, said Fachir, cooperation with Latin American countries has not been too much due to distance issues, and high tariffs for entry into Indonesia around 35%.
Regarding Vale, on October 11, the company together with Vale's shareholders namely Vale Canada Limited (VCL) and Sumitomo Metal Mining Co., Ltd. (SMM), and Mining Industry Indonesia (MIND ID) signed a Preliminary Agreement to take over 20% of Vale's divestment shares to Indonesian participants.
MIND ID is a new brand that was officially introduced for the holding of mining SOEs that were previously named PT Indonesia Asahan Aluminum or Inalum.
Divestment of 20% of Vale Indonesia's shares is an obligation of the amendment to the Contract of Work (CoW) in 2014 between Vale Indonesia and the government which must be carried out 5 years after the amendment. (*)
The amount of the jumbo investment is still being discussed between the two parties to calculate the investment portion of each company.
Vale Indonesia Deputy Director Febriany Eddy said the investment funds prepared will be used to develop two new smelters, and the development of one existing smelter.
Two smelters will be developed, namely in Bahodopi, Morowali (Central Sulawesi) and Pomalaa, in Kolaka, Southeast Sulawesi.
"So this is our partner, so it's not all Vale. We focus on expansion. In Bohodopi there will be mining and smelters, in Pomalaa there will also be smelters and mines," said Febriany on the sidelines of the Latin American and Caribbean Business Forum (Indonesia-Latin Indonesia American and the Caribbean / lNA-LAC), in Jakarta, Tuesday (10/15/2019).
For the smelter in Pomalaa, the company estimates an investment of US$ 2.5 billion (Rp35 trillion) is needed for the smelter, and a mine of around US$ 300 million (Rp4.2 trillion). While the project in Bahodopi is projected to require an investment of US$ 1.6-1.8 billion (Rp25 trillion), while for a mine around US$ 300 million.
As for expansion in existing projects, namely for Sorowako mining in Nuha, East Luwu, South Sulawesi, with a projected investment fund of US$ 300-400 million.
"We are working on this with partners, how much portion is still being discussed. The project has been determined, and the scale has also been done. Only now are negotiations with partners," he said.
It's just that it has not been revealed by Vale's partners for this project. The smelter project in Pomalaa is in the stage of commercial negotiations and alternative funding, as well as licensing.
"We hope that the permit can be obtained soon. Now it is still an EIA at MEF [Ministry of Environment and Forestry]. They are very helpful, even though there have been several revisions. Later after the EIA we can submit another permit, so that this last revision is hopefully no change so can be finalized, "he explained.
As for the Bahodopi project, Vale is currently unable to announce partners and is still focused on finalizing the negotiations.
"If the negotiation is a deal, we still have to have permission, hopefully if it goes well. So next year will be the same as Pomalaa," he said.
On the occasion of the Deputy Minister of Foreign Affairs of the Republic of Indonesia, Abdurrachman M. Fachir, said Vale did indeed get an investment commitment from one of the Brazilian companies, for the next 5 years amounting to US$ 5 billion. The investment commitment was expressed in between the Latin American and Caribbean Indonesian Business Forum.
In addition to Vale, this business forum will also produce a trade value of US$ 20 million.
So far, said Fachir, cooperation with Latin American countries has not been too much due to distance issues, and high tariffs for entry into Indonesia around 35%.
Regarding Vale, on October 11, the company together with Vale's shareholders namely Vale Canada Limited (VCL) and Sumitomo Metal Mining Co., Ltd. (SMM), and Mining Industry Indonesia (MIND ID) signed a Preliminary Agreement to take over 20% of Vale's divestment shares to Indonesian participants.
MIND ID is a new brand that was officially introduced for the holding of mining SOEs that were previously named PT Indonesia Asahan Aluminum or Inalum.
Divestment of 20% of Vale Indonesia's shares is an obligation of the amendment to the Contract of Work (CoW) in 2014 between Vale Indonesia and the government which must be carried out 5 years after the amendment. (*)
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