Adaro eyes $291 million from unit IPO to spin off coal arm
Adaro is spinning off the coal mining unit valued at $2.45 billion to focus on developing cleaner energy, with an aluminum smelter being built in Kalimantan.
PT Vale and Chinese battery metal producer GEM Co. have signed a project investment cooperation framework agreement to establish a high-pressure acid leach (HPAL) facility in Indonesia’s central Sulawesi province.
The $1.42 billion plant will process nickel laterite ore from the Vale unit into 66,000 tonnes of mixed hydroxide precipitate annually.
According to GEM, the plant will adhere to zero-carbon and intelligent design principles.
The investment includes $40 million for a research and development center for knowledge transfer and local talent development, $30 million for an ESG compound featuring green landscaping, employee dormitories, domestic water supply and waste treatment, and $10 million for community development and public facilities.
“By integrating advanced technology, eco-friendly practices, and a commitment to net-zero production, we are shaping a future where Indonesia is recognized as a leader in sustainable industrial development,” PT Vale CEO Febriany Eddy said in a news release.
Indonesia accounts for more than half of global nickel production and has been seeking foreign investment in its processing industry.
GEM will own up to a 25% stake in the project, the Vale unit will hold 30%, and a third party will be introduced for the remaining share.
GEM and PT Vale will also consider building downstream anode and precursor plants.
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