ASIATODAY.ID, JAKARTA – PT Vale Indonesia Tbk. (INCO) signed a collaboration with the Chinese company, GEM CO., Ltd to build a smelter with High Pressure Acid Leaching (HPAL) technology in Central Sulawesi with an investment value of US$ 1.4 billion.
The signing of the collaboration was witnessed directly by Indonesian President Prabowo Subianto during the Indonesia-China Business Forum at The Peninsula Hotel, Beijing, Sunday, November 10 2024.
“Our vision for this HPAL project is to set a new global standard in sustainable MHP production,” said INCO CEO Febriany Eddy in an information disclosure, quoted Tuesday, November 12 2024.
The collaboration project between Vale and GEM CO is planned to be the construction of a zero-emission nickel smelter, with production of 60,000 tons of nickel in the form of mixed hydroxide precipitate (MHP) every year.
In detail, this investment includes the development of a research center for knowledge transfer and local talent development amounting to US$40 million, an ESG Compound amounting to US$30 million and US$10 million for community development and public facilities commitments.
“This project is not just MHP production, but rather a model of responsible resource management,” said Febriany.
Apart from that, the ESG implementation carried out by INCO was considered positive by the leadership of GEM Co. Ltd. Xu Kaihua. He hopes that this collaboration can provide raw materials for stun batteries that are more sustainable.
“This HPAL project is a vital collaboration that combines our expertise in processing sustainable materials with Indonesia’s abundant resources,” said Kaihua.
For your information, during January-September 2024, there was a significant decrease in net profit based on INCO’s books, namely to US$51.1 million.
This decline was a result of the decline in the average selling price of nickel, resulting in sluggish income. INCO’s net profit in 9 months 2024 fell 78.55% year-on-year (YoY) from US$238.27 million in the same period in 2023 based on the financial report as of September 30 2024.
The fall in net profit is in line with the decline in INCO’s revenue until the end of September 2024. INCO’s revenue fell 24.45% YoY to US$708.5 million from US$937.8 million in the same period last year. (AT Network)
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