The framework agreement is signed by Febriany Eddy and
Bernardus Irmanto, each as CEO and CFO of PT Vale, and
Xuehua Chen, chairman of Huayou.

The project will adopt and apply Huayou’s HPAL process, technology and configuration to process the limonite ore and low-grade saprolite ore from PT Vale’s mines in Pomalaa to produce a mixed hydroxide precipitate (MHP) product with a potential production capacity of up to 120,000 metric tons per year (mt/y) of nickel. Both parties are expected to sign definitive agreements within the next six months. The construction that already started through early works done by PT Vale will continue and accelerate with this cooperation agreement with the aim to complete construction within three years period.

In related news, Japan’s Sumitomo Metal Mining Co. Ltd. withdrew its interest in the Pomalaa nickel refinery, saying it had encountered difficulties trying to work with PT Vale Indonesia. “The Pomalaa project was the centerpiece of Sumitomo’s strategy to secure nickel resources to achieve its long-term vision of its 150,000 mt/y annual nickel production rate,” Sumitomo Metal Mining President and Representative Director Akira Nozaki said. “It was also positioned as a major project to increase Sumitomo’s corporate value in its recently disclosed 2021 three-year business plan. While we regret this outcome, we will continue our efforts to secure nickel resources… to ensure a stable supply of Sumitomo’s nickel products.”