PT Vale president director Bernadus Irmanto said the company had only secured about 30% of the ore volume quota it had requested and the shortfall jeopardised its partnerships. — AFP
JAKARTA: Nickel miner PT Vale Indonesia (PT Vale) is seeking approval to revise its annual production plan (RKAB) after revealing that its current ore production quota is insufficient to meet supply commitments for three major high-pressure acid leach (HPAL) projects.
PT Vale president director Bernadus Irmanto said the company had only secured about 30% of the ore volume quota it had requested and that the shortfall jeopardised its partnerships.
“We have obtained RKAB approval. However, the quota granted to PT Vale, which is about 30% of what we requested, will most likely not be able to fulfill our commitments to the plants I explained before,” Bernadus told House Commission XII, which oversees energy and mineral resources, on Monday.
“Hopefully, PT Vale can get the opportunity to submit a revised RKAB and obtain sufficient volume to meet the commitments to partners, and commitments to shareholders.”
Bernadus presented details on three strategic HPAL projects, the most advanced being in Pomalaa, South-East Sulawesi, developed in partnership with China’s Huayou and United States-based Ford Motor.
The plant, with a 120,000-tonne capacity, requires 21 million tonnes of limonite ore annually, with mechanical completion targeted for August 2026. Mining must begin this year to build a three-month stockpile.
The second project is the IGP in Bahodopi, Morowali, a venture with China’s GEM and South Korea’s EcoPro.
Targeting completion in the fourth quarter of this year, its 160,000-tonne capacity will require 10.4 million tonnes of limonite and 5.5 million tonnes of saprolite annually. A three-month stockpile must also be prepared beforehand.
The third project is in Malili, South Sulawesi, a joint venture with Huayou, located 60 km from Vale’s existing Sorowako mine.
The plant will need 11.5 million tonnes of Sorowako-sourced limonite annually to produce 60,000 tonnes of nickel and 5,000 tonnes of cobalt in the form of mixed hydroxide precipitate. Bernadus expects the Malili plant to begin operations in 2027.
“This is why our appeal for support focused squarely on securing sufficient ore production quotas from our mines in Pomalaa, Bahodopi and Sorowako.”
Local mining firms are calling for the “expeditious” execution of procedural steps, including RKAB approvals, after delays disrupted operations at PT Vale earlier this year.
All mining companies in Indonesia are required to submit an annual production plan, known as an RKAB, for government approval, with authorities setting output quotas for the industry.
While temporary permits have provided short-term relief, experts warn that a growing backlog could undermine investment certainty and the sector’s long-term stability.
In 2024, the government shifted the quota approval process from an annual cycle to a three-year one, giving permit holders in the production stage a longer planning horizon, reducing bureaucratic red tape and providing greater certainty for long-term contracts.
However, the government reverted to annual approvals last September to better monitor production levels, respond more quickly to market changes and prevent oversupply that could hurt commodity prices and state revenue.
On Dec 31, the Energy and Mineral Resources Ministry issued a policy allowing mining companies to operate at limited capacity while awaiting final approval of their 2026 work plans.
The directive permits production of up to 25% of the 2026 target outlined in existing three-year RKAB documents and is effective until March 31. — The Jakarta Post/ANN
