The partners have agreed to build a second HPAL plant to produce MHP in Indonesia.

Vale and Huayou plan to build a US$1.8Bn HPAL plant in Sorowako, South Sulawesi, to produce 60ktpy of nickel in mixed hydroxide precipitate (MHP).  Back in April, the partners agreed to develop an HPAL plant in Pomalaa, Southeast Sulawesi, to produce 120ktpy of MHP.  Cobalt capacities were not stated. 

Both Huayou and Vale are heavily invested in Indonesia.  Huayou part owns the Huafei Smelter, along with Eve Energy, which started production in 2021.  The smelter has a production capacity of 120ktpy Ni and 15ktpy Co.  Meanwhile PT Huayue, another Huayou JV with Tsingshan Holding Group and China Molybdenum, shipped its first batch of MHP to China back in February. Vale’s main assets in the country are the Sorowako open-pit nickel laterite mine and accompanying plant, which uses pyrometallurgical processes to convert Ni-Co concentrate into Ni-Co matte which is then exported to Japan. 

Indonesia continues to grow in importance as a nickel powerhouse.  The country is the largest source of nickel ores globally, hosted in laterite deposits. Its nickel strategy is part of a wider commodity-led development strategy, which aims to attract investment to add value to the economy.