PT Vale Indonesia Tbk. (INCO) is preparing capital expenditure (capex) of up to US$1.1 billion (approximately IDR 19.29 trillion, based on an exchange rate of IDR 17,540 per US dollar) in 2027, marking the peak of the company's expansion.
Vale Indonesia Director Rizky Andhika Putra said the company currently has a US$750 million sustainability-linked loan as a standby financing facility. Nevertheless, the company remains open to additional financing to cover the full funding needs of its expansion plans.
According to Rizky, the capex requirement for this MIND ID holding company in 2026 is estimated at nearly US$700 million, covering mine development, HPAL projects and sustaining capex needs.
"2027 will be the peak and the largest year in the expansion period, reaching up to US$1.1 billion, because it includes a fairly large investment in our new smelters, namely the HPAL projects," Rizky said during an online public expose on Thursday (September 10, 2026).
In 2028, the state-owned nickel miner has still earmarked around US$800 million in capex to support the development of the HPAL project in Sorowako.
On the operational side, Vale is optimistic about achieving its 2026 nickel matte production target of 67,645 metric tonnes. This confidence is supported by first-half 2026 production, which exceeded the plan by around 1%.
Vale Indonesia Deputy President Director Abu Ashar said repairs to electric furnace No. 3 were completed in June 2026, supporting operational stability in the second half of 2026. In addition, the nickel grade from mining activities reached 1.82%, which he said is one of the highest levels in the past three years.
Abu explained that higher nickel grades provide an opportunity to optimize production, as the plant does not need to process a larger volume of material to produce the same output. With favorable ore supply conditions and stable plant operations, the company is confident in maximizing nickel matte production in the second half of the year.
"We are very optimistic. The repair work has been completed, the nickel grade of feed from the mine to the plant is quite good, and plant operations are also quite stable, so we are confident of achieving the annual production target of 67,645 metric tonnes this year," Abu said.
