Morowali, 22 July 2026 — Indonesia’s efforts to strengthen domestic nickel downstreaming and build a sustainable battery-industry supply chain have achieved another significant milestone. PT Vale Indonesia Tbk (“PT Vale”), a member of Mining Industry Indonesia (“MIND ID”), together with its partners GEM Co., Ltd. and EcoPro, marked an important step forward in the development of sustainable nickel downstreaming with the arrival of an autoclave, a key piece of equipment for the High-Pressure Acid Leaching (“HPAL”) Project in Sambalagi, Bungku Pesisir, Morowali, Central Sulawesi, on Wednesday, 22 July 2026. This milestone represents substantial progress in the construction of the low-carbon nickel-processing facility, which forms part of the Indonesia Growth Project (“IGP”) Morowali.
As a National Strategic Project (“PSN”), the Sambalagi HPAL Project constitutes an important component of the Government’s agenda to accelerate nickel downstreaming and develop Indonesia’s electric-vehicle ecosystem. Its PSN status was established under Coordinating Ministry for Economic Affairs Regulations No. 9 of 2022 and No. 21 of 2022, which designated PT Vale’s integrated mining development in the Bahodopi Block and its associated nickel-
processing facilities as a National Strategic Project. Integrated with the Bahodopi Block mine, the HPAL project is being developed through PT Bahodopi Nickel Smelting Indonesia (“BNSI”), a joint venture between PT Vale, GEM Co., Ltd. and EcoPro. Located within the Indonesia Green Industrial Park (“IGIP”) in Morowali, Central Sulawesi, the project is designed to support the development of a globally competitive downstream nickel industry while contributing to the transition towards a low-carbon economy.
The arrival of the autoclave represents a strategic milestone in the project’s construction phase. As a core component of HPAL technology, the autoclave lies at the heart of the process used to treat limonite ore through a combination of high temperature, high pressure and sulphuric acid, enabling nickel and cobalt to be extracted efficiently.
The resulting product is Mixed Hydroxide Precipitate (“MHP”), an intermediate material that serves as an essential feedstock in the electric-vehicle battery supply chain.
The Sambalagi HPAL facility is designed to produce approximately 90,000 tonnes of contained nickel per year in the form of MHP, supported by an annual feedstock supply of approximately 10.4 million tonnes of limonite ore sourced from PT Vale’s mining area in Bahodopi. The plant is being constructed across three production lines—Lines A, B and C—with the first mechanical completion milestone targeted for the end of 2026.
President Director and Chief Executive Officer of PT Vale Indonesia Tbk, Bernardus Irmanto, said the arrival of the autoclave symbolised tangible progress in the project while reaffirming the Company’s commitment to advancing sustainable mineral downstreaming.
“The arrival of this autoclave marks an important milestone for the Sambalagi HPAL Project. As the heart of the HPAL process, the autoclave will enable limonite ore to be transformed into a high-value-added product that supports the global electric-vehicle supply chain. This milestone reflects the commitment of PT Vale and its partners to developing a competitive nickel-processing industry founded on the principles of sustainability and occupational safety, while delivering long-term benefits for Indonesia and the communities surrounding our operations,” he said.
As part of its commitment to more sustainable operations, the Sambalagi HPAL Project incorporates a range of low-carbon solutions into the facility’s design. Its operational electricity requirements will be supported by Waste Heat Recovery Power Generation (“WHRPG”), which captures residual heat from the production process and converts it into electricity more efficiently. The development of solar power generation is also planned as part of broader efforts to increase the use of clean energy within the industrial estate.
In addition to the processing facility, the project includes the development of supporting infrastructure, including a logistics jetty, utility facilities, worker accommodation and various social facilities required to support long-term operations.
Sustainable Downstreaming Strengthens National Industrial Sovereignty
Minister of Investment and Downstreaming and Head of the Indonesia Investment Coordinating Board (“BKPM”), Rosan Perkasa Roeslani, emphasised that the development of the Sambalagi HPAL facility reflected a new direction for Indonesia’s downstreaming agenda—one that not only seeks to increase the value added of mineral resources, but also establishes new standards for international collaboration, sustainability and development that delivers tangible benefits for communities.
“Sambalagi HPAL is setting a new benchmark today, rather than merely following existing standards. This project is clear evidence that cross-border collaboration between Indonesia, South Korea and China can proceed in alignment with our national interests: strengthening sovereignty over our natural resources, creating employment and improving public welfare,” Rosan said.
According to Rosan, the arrival of the autoclave symbolised a much broader journey. It represented not merely the construction of an industrial facility, but a tangible step towards establishing an integrated and sustainable downstream ecosystem that would strengthen Indonesia’s future competitiveness.
“Today, we are indeed welcoming the arrival of the autoclave at Sambalagi HPAL. However, what we are truly building is not merely an industrial facility. We are building a comprehensive downstream ecosystem and a better future for the people of Central Sulawesi and Indonesia. This is the true meaning of downstreaming: creating value, creating opportunity and creating hope,” he added.
Rosan also commended the development of the area for extending beyond the construction of industrial facilities to include supporting amenities such as sports facilities, recreational spaces and other social infrastructure that can benefit surrounding communities. He said this approach reflected the development of an inclusive industrial estate focused on improving quality of life.
Furthermore, he noted that the commitment demonstrated by PT Vale and its partners to developing a low-carbon industrial estate was aligned with the Government of Indonesia’s Net Zero Emissions agenda. This would ensure that current development not only generated economic benefits, but also safeguarded environmental sustainability for future generations.
Regional Government Supports the Development of a Sustainable Industrial Estate
Echoing the remarks of Minister of Investment and Downstreaming, Head of BKPM and Chief Executive Officer of Danantara Indonesia Rosan Perkasa Roeslani, Deputy Governor of Central Sulawesi Reny Arniwaty Lamadjido also expressed her appreciation for the development of Sambalagi HPAL.
She noted that the project not only promoted economic growth through downstreaming, but also gave due attention to social considerations. In her view, the development of an industrial estate should generate benefits that can be experienced directly by surrounding communities.
“We appreciate the commitment of PT Vale and its partners, who are not only developing an industrial estate, but also creating opportunities for local micro, small and medium enterprises to grow and providing communities with access to the facilities that have been developed. This is the kind of approach we expect, where economic growth progresses alongside improvements in people’s quality of life,” she said.
Meanwhile, Morowali Regent Iksan Baharudin Abdul Rauf welcomed the progress achieved in the construction of the Sambalagi HPAL Project, describing it as an important driver of regional economic growth and a development that further reinforces Morowali’s position as a national centre for mineral downstreaming.
“The Morowali Regency Government welcomes the progress of the Sambalagi HPAL Project as part of the effort to stimulate regional economic growth through industrial downstreaming.
We believe that investments of this nature will create more employment opportunities, stimulate local businesses and generate a broader multiplier effect for regional development,” Iksan said.
He emphasised that the Morowali Regency Government remained committed to fostering a conducive investment climate and strengthening collaboration with all stakeholders to ensure that the development of the industrial estate delivered optimal benefits for local communities.
“The successful development of an industrial estate requires close collaboration between government, business and communities. The Morowali Regency Government therefore stands ready to continue working in synergy with PT Vale and all partners to support the development of a competitive and sustainable industrial estate capable of creating prosperity for the people of Morowali,” he added.
The arrival of the autoclave provides an important foundation for the installation of major equipment, commissioning and, ultimately, the commencement of operations at the Sambalagi HPAL facility.
Through this project, PT Vale and its partners, through PT BNSI, continue to strengthen their role in supporting Indonesia’s national downstreaming agenda, increasing the value added of the country’s mineral resources and reinforcing Indonesia’s position as a strategic participant in the global battery-industry supply chain and the energy transition.
