Vale to complete fuel conversion at one reduction kiln this year

By Brigida Ernestina Elu

IDX-listed integrated nickel mining company PT Vale Indonesia Tbk hopes to complete the fuel conversion program from high sulfur fuel oil (HSFO) to coal at one of its five reduction kilns in the Sorowako processing plant in South Sulawesi by the end of this year.

Bayu, Widyanto, Director of Finance & Controller at Vale Indonesia, said to Petromindo.com that the fuel conversion program at the kiln has now entered commercial demonstration phase.

He added that the program will gradually be implemented at the other four kilns as part of the company?s strategy to help reduce fuel cost, the largest component of production cost.

?We?ll first evaluate the results, then afterwards move to other kilns. Hopefully, next year we would be able start with another kiln, assuming that the (program at) kiln No 3 runs smoothly and effectively.

PT Vale started HSFO to coal fuel conversion program at its dryers in 2008, which was completed entirely in 2014. Following the successful program, the company then implements the program at the reduction kilns as the company seeks to further reduce fuel cost amid the lingering commodity price downturn.

Editing by Reiner Simanjuntak