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Nickel miner Vale Indonesia signs HPAL deal with China's Huayou

Nickel miner Vale Indonesia signs HPAL deal with China's Huayou

Reuters · 09/13/2022 09:26
Nickel miner Vale Indonesia signs HPAL deal with China's Huayou

- Nickel miner PT Vale Indonesia INCO.JK on Tuesday signed an agreement with China's Zhejiang Huayou Cobalt 603799.SS to build a second high-pressure acid leach (HPAL) plant to produce material used in batteries to power electric vehicles.

Under the heads of agreement, Vale and Huayou plan to build an $1.8 billion HPAL plant in Sorowako, South Sulawesi, to produce 60,000 tonnes of in mixed hydroxide precipitate (MHP), chief executive Febriany Eddy told reporters.

Vale in April had also signed a deal with Huayou to develop an HPAL plant in Pomalaa, Southeast Sulawesi, to produce 120,000 tonnes of MHP. U.S. carmaker Ford Motor Co. later joined the partnership for this plant.

Similar to the agreement for Pomalaa, Huayou would also build the plant in Sorowako with Vale reserving the rights to buy stake at the plant, chief financial officer Bernardus Irmanto added.

Febriany said a final investment decision (FID) for the Pomalaa plant is expected by the end of this year and a FID for Sorowako to follow year.

Construction of each plant would take around three years at the most, she said.

"These are strategic projects for Vale because they will produce MHP, which is a material for electric car batteries," Febriany added.

Indonesia is keen to utilise its rich reserves to attract investment into metal processing, production of electric vehicle battery material and ultimately building EVs in the country.

The government had banned exports of unprocessed ore to ensure sufficient supplies for investors, which include major metal companies from China, as well as South Korean companies such as LG Energy Solution and Hyundai Motor.

Last week, Vale also signed a $2.1 billion deal with China's Shandong Xinhai Technology and a unit of China Baowu Steel Group to build a refinery to produce ferronickel.


Vale's most recent refinery deals:

Location

Investment

Partners

Planned capacity

Expected completion

Bahodopi, Central Sulawesi

$2.1 bln

Shandong Xinhai Technology Co. Ltd, Taiyuan iron & Steel Co. Ltd (a unit of China Baowu Steel Group)

73,000 tonnes to 80,000 tonnes of in ferronickel

2025

Pomalaa, Southeast Sulawesi

$4.5 bln for mine, refinery and other facilities

Zhejiang Huayou Cobalt, Ford Motor Co.

120,000 tonnes of in mixed hydroxide precipitate (MHP)

2025

Sorowako, South Sulawesi

$1.8 bln

Zhejiang Huayou Cobalt

60,000 tonnes of in MHP

2026


(Reporting by Fransiska Nangoy, Bernadette Christina Munthe
Editing by Ed Davies)

((Fransiska.Nangoy@thomsonreuters.com;))