PT Vale Indonesia Tbk (Vale Indonesia) has started construction of an integrated low carbon nickel mining and processing plant in Morowali, Central Sulawesi, Indonesia, Kallanish notes.

A total investment cost of up to IDR37.5 trillion ($2.48 billion) has been allocated, with production capacity of 73,000 tonnes/year.  

The Morowali project will be developed by Vale Indonesia and its partners.

PT Bahodopi Nickel Smelting Indonesia  (PT BNSI), a company created by Vale Indonesia that aims to become a joint venture between Vale Indonesia and its partners, is responsible for the construction and operation of the processing factory.

The Coordinating Ministry for Economic Affairs, has declared the project as one of the Indonesian government's national strategic projects for 2022. 

The mining site is in Bungku Timur & Bahodopi Subdistrict and the processing factory site is in Sambalagi Village, Bungku Pesisir Subdistrict.  

The smelter to be built in Sambalagi will use rotary kiln electric furnace technology.

"The presence of this Morowali project is a representation of our commitment to be a reliable and sustainable nickel producer for Indonesia with the lowest carbon footprint,” says Vale Indonesia ceo Febriany Eddy.