The Indonesian Mining Experts Association (Perhapi) has stated that PT Vale Indonesia's development of a new nickel mine in the Tanamalia block is in line with current trends in the battery raw material market, particularly for MHP and MSP.
Perhapi Chairman Sudirman Widhy Hartono noted that the low-grade limonite ore in the Tanamalia deposit serves as feedstock for nickel battery intermediates such as MHP, to be processed through high-pressure acid leach (HPAL) smelters. He said the current timing is opportune for Vale and other nickel miners to process low-grade nickel ore, in line with the government's national battery production programme.
The Tanamalia block has been part of Vale's concession since its contract of work (KK) era. With Sorowako's ore reserves gradually depleting, Vale is stepping up exploration in undeveloped blocks such as Tanamalia. The company has obtained a forest area use permit approval (PPKH) from the Ministry of Forestry, and the project is currently in the front-end loading (FEL) Phase II stage, covering feasibility studies, economics, technical development, operations, legal and ESG aspects. Should nickel grades prove sufficient, construction is expected to begin in 2027–2028, with mining operations starting as early as 2031.
The integrated HPAL smelter project is planned to be developed with a European automotive manufacturer as partner, with Volkswagen AG reported as a potential collaborator. Vale has indicated that the information remains subject to confidentiality and that any formal partnership would be publicly announced. The initiative would further extend Vale's downstream nickel processing chain in Indonesia.
