Vale Indonesia Pushes for Increased Nickel Production Quota in 2026

TEMPO.CO, Jakarta - President Director of mining giant PT Vale Indonesia Tbk, Bernardus Irmanto, has sought support from Commission XII of the House of Representatives (DPR) to advocate for an increase in nickel production quotas within the 2026 Work Plan and Budget (RKAB). This request follows the Ministry of Energy and Mineral Resources' approval of a quota that satisfies only approximately 30 percent of the company’s initial request. Bernardus emphasized that the restricted quota poses a risk to the nickel ore supply required for three High-Pressure Acid Leaching (HPAL) projects in Pomalaa, Morowali, and Sorowako, which are currently being developed alongside strategic partners. "Currently, we have received RKAB approval, but the volume is only about 30 percent of what we requested," Bernardus stated during a hearing with DPR Commission XII on Monday, January 19, 2026. He detailed that the HPAL Pomalaa project is targeting mechanical completion by August 2026, requiring a steady supply of around 21 million tons of limonite annually. Meanwhile, the HPAL Morowali project necessitates approximately 10.4 million tons of limonite, alongside the obligation to secure initial stockpiles prior to the commencement of operations. According to Bernardus, sufficient mining quotas are essential to fulfilling supply commitments and supporting the government’s nickel downstreaming initiatives. He expressed hope that PT Vale Indonesia would be granted the opportunity to submit a revised RKAB to align production volumes with the actual demands of these ongoing projects. "Hopefully, PT Vale can get the opportunity to revise the RKAB and obtain sufficient volume to fulfill commitments to partners and shareholders," he noted. Following the meeting, Bernardus declined to disclose the specific total production quota approved by the government. He also refrained from confirming whether the current quota is lower than last year's, explaining that production requirements for 2026 differ from those of 2025 due to the accelerated pace of downstreaming projects. "So we have to adjust our operational activities, with the hope that we can still submit a revision later," he remarked. Previously, Vale projected the completion of its three HPAL plant projects across 2026 and 2027. These facilities are located within the Indonesia Growth Project (IGP) sites in Pomalaa (Southeast Sulawesi), Morowali (Central Sulawesi), and Sorowako (South Sulawesi). Bernardus identified IGP Pomalaa as the most advanced of the HPAL projects. This venture involves roughly 6,200 workers and carries an investment value of US$4.6 billion, or approximately Rp76.7 trillion, with a completion target set for 2026. Meanwhile, IGP Morowali successfully dispatched its inaugural shipment of 2.2 million tons of saprolite nickel ore in July 2025. This project employs around 4,700 workers with an investment of US$2 billion. The HPAL plant at IGP Sorowako is slated for completion in 2027, with total investment reaching US$2.2 billion. Read: Indonesia to Scale Back Coal and Nickel Production in 2026