PT Vale and China’s GEM partner for $1.4 billion Indonesian nickel plant

PT Vale and Chinese battery metal producer GEM Co. have signed a project investment cooperation framework agreement to establish a high-pressure acid leach (HPAL) facility in Indonesia’s central Sulawesi province.

The $1.42 billion plant will process nickel laterite ore from the Vale unit 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 $40 million for a research and development center for knowledge transfer and local talent development, $30 million for an ESG compound featuring green landscaping, employee dormitories, domestic water supply and waste treatment, and $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 news 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.