Vale still waiting for permits to develop new smelter

By Tri Subhki R

IDX-listed nickel producer PT Vale Indonesia Tbk (INCO) has yet to start its US$1.4 billion nickel smelter expansion project in Sorowako, South Sulawesi, as the company is still waiting for the completion of the necessary permits.

?We are still waiting for the completion of some crucial permits among others environmental impact (AMDAL) and forestry permits,? Vale Indonesia Chief Financial Officer Febriany said to Petromindo.com recently.

Under the expansion project, Vale will build a new smelter facility in two stages with total annual production capacity up to 120,000 metric tons of nickel in matte. Currently, the smelter in Sorowako can produce up to 78,000 metric tons of nickel in matte per annum.

Febriany also mentioned that lack of supporting infrastructure, particularly power, are the key challenges to develop nickel smelter in Indonesia.

Editing by Reiner Simanjuntak