Vale needs 300,000 tons of coal for smelter next year

By Hiski Darmayana

IDX-listed nickel producer PT Vale Indonesia said it will need 300,000 tons of coal early next year for dryer operation within its smelter in Sorowako, South Sulawesi.

The coal supply will form part of the company's fuel conversion program aimed at replacing the high sulphur fuel oil (HFSO) it currently uses, said Director of Finance Febriany in Jakarta.

At present, the conversion program already requires 150,000 tons of coal during commissioning.

"Next year,? when the dryer system is in full operation. Coal requirement will be double. Based on a recent tender we held earlier this year, the suppliers are PT Marunda Graha Mineral and PT Trubaindo Coal Mining, Febriany told petromindo.com on Tuesday.

Vale has a nickel smelter capable of producing 75,000 tons of nickel in matte per year. The capacity will gradually be increased to 120,000 tons a year within the next five years.

Vale Indonesia has 3 concession areas, one each in Central Sulawesi, South Sulawesi and Southeast Sulawesi, totaling 190,513 hectares.

Editing by Dadan Wijaksana