GEM and PT Vale Indonesia (PTVI) signed a cooperation agreement to jointly build a nickel-processing plant in Central Sulawesi.

Under the terms of the agreement, the two parties will jointly develop a high-pressure acid leach (HPAL) plant, which will use a portion of the nickel ore from one of PTVI’s mines to produce mixed hydroxide precipitate (MHP) for the battery sector.  

The plant has been designed to have a capacity of 66ktpy Ni-in-MHP. The initial equity structure of the project’s operating subsidiary will see GEM holding 70%, with PTVI owning the remaining 30%. 

This additional HPAL project will further enhance GEM’s position in Indonesia’s nickel sector. GEM already has one operating HPAL plant and three other projects in the country. Earlier this year, the QMB operation underwent a capacity expansion from 40ktpy Ni to 65ktpy Ni. The Meiming project, in which GEM holds an 87.5% stake, entered the trial production phase in October, with a capacity of 25ktpy Ni. The remaining two projects, ESG, in which GEM holds a 40% stake, and Green Eco Nickel, in which GEM holds a 34.8% stake, are both expected to be completed next year. 

Project Blue is tracking 22 HPAL projects in Indonesia (excluding multiple phases), which are projected to add around 500kt of nickel supply by the end of the decade. Notably, the signing of the investment cooperation framework agreement was attended by Indonesia’s new president, Prabowo Subianto, in a sign that the newly elected government will closely follow its predecessor’s policy of developing the domestic nickel downstream processing sector.