PT Vale Indonesia (ValeIndonesia/INCO) disclosed the amount of investment required to build three smelters or nickel ore processing facilities, with a total investment of approximately US$8.6 billion to US$9 billion, equivalent to 143.5 trillion rupiah. A senior public relations manager of PT Vale Indonesia recently stated that the downstream processing industry must accelerate development, and both parties have reached an agreement, which is why all three smelter construction projects that have been announced, totaling US$8.6 billion or about US$9 billion, must be implemented simultaneously. The three projects include: (1) The smelter project to be built in cooperation with Zhejiang Huayou Cobalt Co., Ltd. in Pomalaa, Southeast Sulawesi; (2) The smelter project to be built in cooperation with Shandong Xinhai Technology Co., Ltd. in Morowali, Central Sulawesi; (3) The smelter project to be built in cooperation with Zhejiang Huayou Cobalt Co., Ltd. in Sorowako, East Luwu Regency, South Sulawesi. He believes that these partners have the technology; currently, the Chinese side has made more progress in smelting, while the Indonesian side has made more progress in mining. These three projects are still under construction.
As we all know, the American automobile company Ford Motor Company and Chinese nickel enterprise Zhejiang Huayou Cobalt have agreed to sign a final investment agreement with PT Vale Indonesia (INCO) to build a nickel smelter with a total value of approximately US$4.5 billion, equivalent to 67.5 trillion rupiah. In addition, the Pomalaa smelter project in Southeast Sulawesi, using high-pressure acid leaching (HPAL) processing technology, will produce 120,000 tons of mixed hydroxide precipitate (MHP) per year. According to Reuters, the CEO of PT Vale Indonesia (INCO) stated that the company and Zhejiang Huayou Cobalt Co., Ltd. estimate that they can complete the construction plan for the smelter by 2026. This agreement is unique because it brings new experience to Ford, involving upstream nickel mining business. PT Vale Indonesia holds a 30% stake in the smelter project, with the remainder controlled by Ford and Huayou. Ford's public relations manager stated when signing the agreement that the agreement marks Ford's first investment in Southeast Asia. Ford can help ensure that the nickel products used in its global business are used in electric vehicle batteries, and that mining and production comply with ethical standards (ESG) based on fair representation and full disclosure.
Through the state-owned mining holding company MINDID, the government has become the largest shareholder of PT Vale Indonesia (INCO). After a period of effort, finally on Monday, February 26, 2024, MINDID signed a share acquisition agreement for a joint venture company, purchasing 14% of PT Vale Indonesia's shares at a price of IDR 3,050 per share, with an acquisition value of approximately US$300 million, equivalent to 4.69 trillion rupiah. The state-owned enterprise officially holds 34% of PT Vale Indonesia's shares and becomes the largest shareholder. Due to the above share transaction, the previous largest shareholder, Vale Canada Limited, saw its shareholding decrease from 43.79% to 33.9%, becoming the second largest shareholder, while Sumitomo Metal Mining Co., Ltd.'s shareholding decreased from 15.03% to 11.5%. The public share ratio circulating on the Indonesia Stock Exchange (IDX) remains unchanged at 20.6%. If the shares listed on the Indonesian stock market are taken into account, Indonesia's shareholding in PT Vale Indonesia reaches as much as 54.6%.
PT Vale Indonesia (ValeIndonesia/INCO) disclosed the amount of investment required to build three smelters or nickel ore processing facilities, with a total investment of approximately US$8.6 billion to US$9 billion, equivalent to 143.5 trillion rupiah. A senior public relations manager of PT Vale Indonesia recently stated that the downstream processing industry must accelerate development, and both parties have reached an agreement, which is why all three smelter construction projects that have been announced, totaling US$8.6 billion or about US$9 billion, must be implemented simultaneously. The three projects include: (1) The smelter project to be built in cooperation with Zhejiang Huayou Cobalt Co., Ltd. in Pomalaa, Southeast Sulawesi; (2) The smelter project to be built in cooperation with Shandong Xinhai Technology Co., Ltd. in Morowali, Central Sulawesi; (3) The smelter project to be built in cooperation with Zhejiang Huayou Cobalt Co., Ltd. in Sorowako, East Luwu Regency, South Sulawesi. He believes that these partners have the technology; currently, the Chinese side has made more progress in smelting, while the Indonesian side has made more progress in mining. These three projects are still under construction.
As we all know, the American automobile company Ford Motor Company and Chinese nickel enterprise Zhejiang Huayou Cobalt have agreed to sign a final investment agreement with PT Vale Indonesia (INCO) to build a nickel smelter with a total value of approximately US$4.5 billion, equivalent to 67.5 trillion rupiah. In addition, the Pomalaa smelter project in Southeast Sulawesi, using high-pressure acid leaching (HPAL) processing technology, will produce 120,000 tons of mixed hydroxide precipitate (MHP) per year. According to Reuters, the CEO of PT Vale Indonesia (INCO) stated that the company and Zhejiang Huayou Cobalt Co., Ltd. estimate that they can complete the construction plan for the smelter by 2026. This agreement is unique because it brings new experience to Ford, involving upstream nickel mining business. PT Vale Indonesia holds a 30% stake in the smelter project, with the remainder controlled by Ford and Huayou. Ford's public relations manager stated when signing the agreement that the agreement marks Ford's first investment in Southeast Asia. Ford can help ensure that the nickel products used in its global business are used in electric vehicle batteries, and that mining and production comply with ethical standards (ESG) based on fair representation and full disclosure.
Through the state-owned mining holding company MINDID, the government has become the largest shareholder of PT Vale Indonesia (INCO). After a period of effort, finally on Monday, February 26, 2024, MINDID signed a share acquisition agreement for a joint venture company, purchasing 14% of PT Vale Indonesia's shares at a price of IDR 3,050 per share, with an acquisition value of approximately US$300 million, equivalent to 4.69 trillion rupiah. The state-owned enterprise officially holds 34% of PT Vale Indonesia's shares and becomes the largest shareholder. Due to the above share transaction, the previous largest shareholder, Vale Canada Limited, saw its shareholding decrease from 43.79% to 33.9%, becoming the second largest shareholder, while Sumitomo Metal Mining Co., Ltd.'s shareholding decreased from 15.03% to 11.5%. The public share ratio circulating on the Indonesia Stock Exchange (IDX) remains unchanged at 20.6%. If the shares listed on the Indonesian stock market are taken into account, Indonesia's shareholding in PT Vale Indonesia reaches as much as 54.6%.
