JAKARTA (TheInsiderStories) - PT Vale Indonesia Tbk (IDX: INCO) is offering majority stakes in its two ferronickel smelter projects in Bahodopi, Central Sulawesi and Pomalaa, Southeast Sulaweis to strategic investors. A number of investors from China, Japan, and Canada reportedly interested in buying these shares and become a strategic partner of the company.
In Pomalaa project, INCO has has been cooperating with Sumitomo Metal Mining Co. Ltd. to produce limonite ore and seeking a third party experienced in producing high-grade saprolite nickel ore into ferronickel. Projects in Pomalaa and Bahodopi still waiting for a government license, and is now in the process of the feasibility study.
The company has estimated that the smelter projects will need an investment of US$2 billion for the next five years. In 2017, INCO prepared capital expenditure of US$100 million for the conversion of coal, improvement and optimization of assets, as well as the turnover number of heavy equipment on a regular basis.
Vale Indonesia President Director Nico Kanter, this time there are two interesting proposals to be evaluated again in each of the smelter. Nico said the company also had a discussion with PT Aneka Tambang Tbk (IDX: ANTM) to explore a cooperation.
Until September of 2016, Vale Indonesia recorded a net profit of $13 million frpm previous quarter loss of $4.6 million. By the end of this year, Vale is targeting production this year reached 80,000 tons.
Next year, INCO targeting the capacity production will be higher than 80,000 metric tons of nickel in 2017 from this year targets 80,000 metric tons of nickel. INCO’s nickel production this year is prediction lowered than 10% of the total target of 80,000 metric tons because the technical failure occurs in early November.