Vale Completes FID for Nickel Mine, Smelter Projects in Bahadopi

PT Vale Indonesia Tbk (INCO) has completed the Final Investment Decision (FID) preparation for the nickel mine and smelter project in the Bahadopi Block, Central Sulawesi. Vale Indonesia President Director Febriany Eddy said that the shareholders approved the FID for the project in the nickel mining block on July 29 and immediately asked the management to start working on the project. "Now it's time for pre-construction. Auctions have also been opened; the project is targeted for completion by 2025," he said Thursday.

The company targets the Bahadopi project to produce 73,000 metric tons of nickel annually. Febriany said that developing Bahadopi Block from a mine to a smelter requires an investment of US$2 billion. "The mining investment comes from our internal cash. As for the factory, we have joint ventures with partners with 49 percent to 51 percent shares," he said.

The funding to build the Bahdopi nickel smelter will be fulfilled mostly through a project financing scheme. "Our target is 60 to 70 percent from debt, and we are negotiating [the rest] with the bank. Project financing if it's possible," he said.