PT Vale and GEM partner to build HPAL nickel processing plant in Indonesia
Leading Indonesian nickel mining company PT Vale and Chinese battery metal producer GEM Co. are collaborating on the development of a high-pressure acid leach (HPAL) facility in Central Sulawesi province.
The $2.1 billion plant will process nickel laterite ore supplied by Vale to produce 66,000 tonnes of mixed hydroxide precipitate (MHP) annually.
“By integrating advanced technology, eco-friendly practices and a commitment to net-zero production, we are shaping a future where Indonesia is recognised as a leader in sustainable industrial development,” PT Vale chief executive officer Febriany Eddy said.
Foreign investment
The deal, witnessed by Indonesian president Prabowo Subianto during his visit to China over the weekend, supports Indonesia’s efforts to attract foreign investment in its processing industry.
President Prabowo noted that the agreement is a further commitment to advancing Indonesia’s green economy and bolstering downstream industries to meet global demand for high-value, sustainable MHP.
He highlighted Indonesia’s intention to align with China’s rise, contributing economically and culturally to the global landscape.
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.
Zero-carbon principles
According to GEM, the plant will adhere to zero-carbon and intelligent design principles.
The proposed investment includes $61 million for a research and development centre for knowledge transfer and local talent development, $45m for an ESG compound featuring green landscaping, employee dormitories, domestic water supply and waste treatment and $15m for community development and public facilities.
GEM chair Kaihua Xu said the HPAL smelter is expected to generate employment, attract new investments and support local economic growth, while aligning with Indonesia’s economic growth target of 8%.
He said the project is crucial for a cleaner future and represents a foundation for deeper cross-border cooperation in green innovation.