The new high-pressure acid leach (HPAL) plant in Sorowako will have a processing capacity of around 60,000 tonnes of nickel limonite ore into mixed hydroxide precipitate (MHP)

PT Vale Indonesia Tbk

PT Vale partners with Huayou for new HPAL plant. (Credit: Vale)

Indonesian mining company PT Vale has teamed up with China’s Zhejiang Huayou Cobalt (Huayou) to build a new smelter that processes nickel limonite into battery materials used in electric vehicles.

The two companies signed the heads of agreement to build a $1.8bn new high-pressure acid leach (HPAL) plant in Sorowako, South Sulawesi, Indonesia.

The agreement expands the existing partnership between the two companies, which started earlier this year through Huayou conducting the feasibility study.

Under the expanded partnership, a new HPAL plant will be constructed for processing around 60,000 tonnes of nickel limonite ore into mixed hydroxide precipitate (MHP).

The MHP is then processed into materials for battery components such as electric vehicles.

Huayou chairman Chen Xuehua said: “Our cooperation is a perfect combination of Vale’s mineral resource advantage and Huayou Cobalt’s advanced High-Pressure Acid Leaching technology advantage, to achieve low-carbon, green and sustainable mineral resource development.

“Our cooperation can also win growth opportunities for both sides, add strength and value to the industry, and make contributions to the economic and social development of Indonesia.”

It is the second HPAL project under the PT Vale and Huayou partnership.

In April this year, the two companies signed an agreement to build the first, 120,000 tonnes capacity HPAL plant in Pomalaa, Kolaka Regency, Southeast Sulawesi.

The US automobile manufacturer Ford Motor later joined the partnership for this plant.

PT Vale said that the project is in line with its commitment to sustainable mining and strategy to support the Government program to build an electric vehicle ecosystem in Indonesia.

PT Vale president commissioner and Vale Base Metals executive vice president Deshnee Naidoo said: “We are pleased to extend our co-operation with Huayou Cobalt on such an important project.

“This partnership agreement is another catalyst for sustainable economic development of Indonesia’s world-class nickel resources and together with recent progress on the Pomalaa HPAL facility and Bahodopi Block Project.”