Petrosea has secured a $1bn (Rp16.38bn) contract from Vale Indonesia for nickel ore mining in the Central Sulawesi region of Bahodopi in Indonesia.
The contract is set to be signed in March and will be valid for ten years, according to a report by Reuters.
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Indonesia is restructuring its nickel operations, aiming to cut down Chinese investment in the sector and qualify for tax credits under the US Inflation Reduction Act (IRA).
However, this excludes electric vehicles (EVs) using critical minerals, which are associated with “foreign entities of concern”.
To facilitate this, the Indonesian Government and industry stakeholders are restructuring investment deals to ensure that Chinese companies become minority shareholders.
Touted as the world’s largest nickel supplier, Indonesia has experienced a notable influx of Chinese capital in recent years.
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By GlobalDataChinese battery metal producer GEM entered a project investment cooperation framework agreement with Vale Indonesia in November last year to set up a $1.4bn high-pressure acid leach (HPAL) facility in Central Sulawesi.
This facility is expected to produce at least 60,000 tonnes of contained nickel in mixed hydroxide precipitate (MHP) annually, while complying with zero-carbon and intelligent design principles.
Earlier in 2024, Bloomberg News reported that French miner Eramet is in talks with Zhejiang Huayou Cobalt on a partnership for battery-grade nickel production in Indonesia.
This potential partnership could involve Eramet supplying ore to Huayou’s HPAL plant in the Weda Bay Industrial Park in Indonesia.
