Vale Opens Doors to South Korean Investors for Sorowako Nickel Smelter Project
Sat 26 Jul 2025, 09:24 AM
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PT Vale Indonesia Tbk (IDX: INCO) confirmed that it is exploring collaboration with a number of potential strategic partners, including from South Korea, for a nickel processing project using High Pressure Acid Leaching (HPAL) technology in Sorowako, East Luwu, South Sulawesi.
This was conveyed by Vale Corporate Secretary, Wiwik Wahyuni, in an information disclosure on the Indonesia Stock Exchange (IDX) on Thursday, July 24, 2025. According to her, the company is open to partnership opportunities, in line with the large funding needs for the smelter project, which is currently in the early stages of construction.
"The company is currently reviewing several strategic options and is in the discussion stage. However, no agreements or contracts have been signed yet", Wiwik said, as quoted from the official information disclosure on the IDX and a CNBC Indonesia report.
Strategic Projects and Foreign Partners
The Sorowako HPAL project has an investment value of USD 1.9 billion. Vale currently has Zhejiang Huayou Cobalt Co. of China as its main partner. However, given the project's large scale, Vale is open to additional partnerships.
Wiwik explained that the Sorowako limonite mine project is scheduled for completion in early 2027, while the HPAL smelter construction is targeted for completion by the end of the same year. The company also emphasized that the smooth completion of the projects will depend heavily on permitting, field conditions, partner support, and financing.
Positive Target to Financial Performance
Vale emphasized that these projects are projected to make a positive contribution to the company's revenue, net profit and cash flow in the long term.
"After operations commence, the Company is targeting returns that can contribute positively to revenue, net profit, and cash flow", she said in a disclosure document.
Three Smelter Projects, Total Investment of IDR 130 Trillion
Vale is currently developing three major nickel processing projects in Indonesia, with a total investment value of approximately USD 9 billion (approximately IDR 130 trillion). The three projects include:
1.The HPAL smelter in Pomalaa, Southeast Sulawesi – in collaboration with Huayou Cobalt and Ford Motor Co, produces 120,000 tonnes per year of Mixed Hydroxide Precipitate (MHP).
2. Nickel smelter in Morowali, Central Sulawesi – in collaboration with Shandong Xinhai Technology Co., Ltd.
3. The HPAL smelter in Sorowako, South Sulawesi – is currently in the initial construction phase.
The three facilities are targeted to begin operating in stages between 2026 and the end of 2027.
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