Amidst Global Nickel Price Pressure, PT Vale Affirms: Industry Must Be a Solution for Indonesia

MAKASSAR, WN—In the midst of fluctuations in world nickel prices and public attention on the impact of the mining industry, PT Vale Indonesia Tbk (PT Vale), part of the MIND ID group, chose to stand with one clear message: the industry must be a solution, not a burden, for Indonesia. This message was conveyed at a Breakfasting Discussion with the media which was held on (2/3/2026) in Makassar.

PT Vale Indonesia’s Head of External Relations Regional and Growth, Endra Kusuma, representing PT Vale’s management, emphasized that global challenges have actually become a momentum to strengthen the foundations of national industry.

Throughout 2025, global nickel prices will experience significant pressure. However, in the midst of this situation, PT Vale continued to record stable operational performance. Until November 2025, matte nickel production will reach 66,848 tonnes, up 3 percent annually. The company’s total revenue reached US$902 million.

For PT Vale, these figures are not just statistics. “Industrial resilience is not built in one season of high prices. This is the result of consistent investment, operational discipline and long-term commitment, especially those that have an impact on society, the environment and the world,” said Endra.

This commitment is clearly visible through the Indonesia Growth Project (IGP), which is now the company’s new growth engine and an important part of the national downstream agenda.

In Pomalaa, a project worth around US$4.5 billion has reached more than 65 percent construction progress. The initial sale of nickel ore at the end of February 2026 is a sign that the project is starting to enter a more mature operational phase. With a stockpile capacity of up to 4 million wet metric tons (Mwmt) and an initial production target of 300,000 tons of limonite per month, Pomalaa is projected to become one of the important nodes of the Indonesian nickel supply chain.

Meanwhile, the Morowali project with an investment value of US$ 2 billion has reached almost 99 percent progress and has recorded initial sales of 2.2 million tonnes of ore in early 2026. In Sorowako, limonite development worth US$ 2.2 billion continues as part of the company’s long-term strategy.

This total integrated investment of close to US$9 billion not only strengthens PT Vale’s position, but also positions Indonesia as a major player in the global supply chain for electric vehicle batteries and clean energy.

However, amidst the spotlight on downstreaming, one issue that never goes away is the environment. PT Vale realizes that sustainability is no longer an additional option, but an absolute prerequisite.

By the end of 2025, more than 50 percent of the mine opening area has been progressively reclaimed, with total reclamation reaching 3,863 hectares. The Sorowako operation is supported by three hydroelectric power plants with a capacity of 365 MW, making it one of the nickel operations with the largest clean energy footprint in Indonesia. More than 100 settling ponds were built to ensure water quality before returning to natural bodies.

This achievement is also reflected in Sustainalytics’ ESG Risk Rating of 23.7—the medium category and the lowest in Indonesia for the mining sector. “Environmental issues must not be answered defensively. They must be answered with data, with action and with transparency,” said Head of Corporate Communication PT Vale Indonesia, Vanda Kusumaningrum.

On the social side, the company says that more than 99 percent of its workforce are Indonesian citizens. Thousands of local workers and contractors are involved in strategic projects in Pomalaa, Morowali and Sorowako. Organic farming programs, community-based waste management, heavy equipment operator training, and the construction of a nursery with a capacity of one million seeds per year are part of efforts to strengthen the local economy.

For PT Vale, downstreaming is not just about building factories and increasing production volumes. Downstreaming is about creating added value domestically, strengthening the local workforce, and ensuring that natural resources truly become the strength of the national economy.

In the midst of the rapid flow of the global energy transition and increasing demand for nickel for electric vehicles, Indonesia is in a strategic position. The question is no longer whether Indonesia has resources, but rather how those resources are managed.

Through long-term investment, operational discipline and consistent sustainability standards, PT Vale confirms one thing: the mining industry can grow without abandoning its responsibilities.

Ramadan is a moment for reflection that true development is balanced development between the economy, environment and society. And in the midst of global pressure, PT Vale continues to strive to stand as part of the solution for Indonesia.(**)

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