ASIATODAY.ID, JAKARTA – The Indonesian government has officially extended the operating permit of PT Vale Indonesia Tbk. (INCO) until 28 December 2035 after the issuance of a Special Mining Business Permit (IUPK) in the name of PT Vale.
Febriany Eddy, CEO and President Director of INCO, said that the IUPK received by Vale Indonesia on May 13 2024 provides legal certainty for the company to operate in its concession area and carry out its business growth strategy.
“Thank you for the trust and support given by the Government of the Republic of Indonesia to Vale Indonesia, and express our deepest gratitude and appreciation for the contributions of all parties. The Company remains determined to move forward together with all stakeholders to provide maximum benefits for all parties,” he explained in a press release, Wednesday, May 15 2024.
Based on the IUPK, PT Vale is obliged to complete the construction of new processing and/or refining facilities, including further downstream facilities, within the specified time period. This development will be carried out by referring to applicable laws and regulations, feasibility studies, as well as company policies and practices (including good mining practices as well as environmental, social and governance).
As an IUPK holder, PT Vale is now required to pay IUPK profit sharing of 10% of net profit to the Government of the Republic of Indonesia, in accordance with applicable regulations. This also means increasing the Company’s contribution to the country and region.
In accordance with the terms and conditions stated in the IUPK, including the completion of the divestment of PT VaIe as announced in a press release on 26 February 2024, the IUPK is valid for the remaining term of the Contract of Work on 28 December 2025 and the first extension is for 10 years until 28 December 2035.
The IUPK can be extended further (each extension is for a period of 10 years) in accordance with applicable regulations.
Previously, PT Vale Indonesia Tbk. (INCO) is committed to completing the investment in mine and smelter development as stated in the Special Mining Business Permit (IUPK) plan.
The Indonesian Minister of Energy and Mineral Resources, Arifin Tasrif, revealed that INCO will invest US$ 11.2 billion to develop mines and smelters in Sulawesi.
The mineral and coal authority has given the investment realization deadline from 2026 to 2029. There are at least four INCO projects currently underway, namely the Sorowako HPAL, SOA HPAL, Bahodopi RKEF, and stainless steel projects, as well as the Pomalaa HPAL.
In more detail, Sorowako HPAL is a collaboration between INCO and Huayou for the construction of an HPAL factory with a capacity of 60,000 Ni per year in MHP. This project will collaborate with Chinese automotive manufacturers or non-investors, such as POSCO, LG Chem, Ford and VW. Sorowako construction has started since the end of 2023 and will carry out further downstreaming to precursors or basic materials for batteries.
Next is the Bahodopi RKEF and Stainless Steel Project. The RKEF factory capacity is around 73,000-80,000 tons of Ni per year in FeNi and collaborates with TISCO and Xinhai. This RKEF is projected to be the RKEF with the second lowest carbon emission intensity after Sorowako because it does not use coal but natural gas. Further downstreaming to stainless steel.
Then, the Pomalaa HPAL Project with a capacity of up to 120,000 tons of Ni per year. INCO collaborates with Huayou and Ford for investments including factories and mines. Currently, construction is underway with further downstreaming to precursors or basic materials for batteries.
Lastly is the HPAL SOA Project. This project has completed the final stage of exploration with a potential HPAL plant of at least 60,000 tons of Ni per year in MHP. This project will collaborate with other automotive manufacturers for further downstreaming to precursors. (AT Network)
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