Vale plans to invest $2 billion in Indonesia

PT Vale Indonesia Tbk, formerly known as INCO, plans to invest up to US$2 billion to develop the country?s nickel mines and their smelting facilities in South Sulawesi, Investor Daily reported on Tuesday.

CEO Vale SA Murillo Fereira said that the $2 billion investment would be part of the company?s $3 billion investment plan for Asia. ?Through Vale Indonesia, we will invest $ 2 billion in Sulawesi,? he said.

Fereira said that the investment would be used for the expansion of nickel smelting plants in Sorowoko and Bahodopi in South Sulawesi. He earlier said that the company would build a new furnace, upgrade two existing furnaces so that the company would be able to operate five furnaces.

The smelting plants will receive electricity supply from three hydro power plants including PLTA Larona, PLTA Balambaru and PLTA Karebbe. For the construction of PLTA Karebbe, Vale has spent a total of $410 million.

Vale plans to increase nickel production from 73,000 metric tons to 120,000 metric tons in 2016.

Since its operation for about 43 years in South Sulawesi, Vale has invested about $2.5 billion. The company?s nickel concession areas in South Sulawesi reach 118,000 hectares.(*)