Jakarta - PT Vale Indonesia Tbk (INCO) has agreed to cooperate with Zhejiang Huayou Cobalt Company (Huayou) to develop a smelter with High-Pressure Acid Leaching (HPAL) technology in Sorowako.

"The cooperation between the two parties started earlier this year and Huayou conducted a feasibility study. The feasibility study has been concluded with positive results," said Vale CEO Febriany Eddy in a press release on Wednesday (9/14).

The new HPAL plant will process limonite nickel ore into Mixed Hydroxide Precipitate (MHP) products with an annual production capacity of 60,000 tons of nickel product in MHP. MHP can then be processed into materials for battery components, such as electric vehicles.

"One of the most important points of this cooperation is the commitment of the parties to achieve carbon neutrality by 2050 and the agreement to work together to minimize carbon emissions. Huayou will have further discussions with PT Vale to study l