PT Vale Indonesia Tbk. (INCO) is targeting the completion of its Pomalaa nickel mining project by the third quarter of 2026. The company currently anticipates nickel prices to fluctuate between USD 15,000 - USD 16,000 per ton.

According to Andaru Adi, Head of Corporate Finance and Investor Relations at INCO, the investment decision for the Pomalaa project—a joint effort with Huayou and Ford to develop a nickel mine and smelter—was made in 2022.

A total of USD 0.5 billion has been allocated for capital expenditure on the Pomalaa mine, with construction progress reaching 20.22% as of April 2025.

"Pomalaa is one of the blocks with significant nickel ore reserves and a quality of limonite ore suitable for further processing using HPAL technology," Andaru said in a disclosure statement on Monday (July 28, 2025).

The Pomalaa mine is targeted for completion in the third quarter of 2026, with a production capacity of 28 Mtpa of limonite and saprolite ore. Andaru confirmed that the Pomalaa block will meet the needs of the electric vehicle battery ecosystem, while saprolite ore can be used to supply other smelters.

Furthermore, the construction of the HPAL plant in Pomalaa, with a capital expenditure of USD 2.7 billion, has reached 13.9% completion. This plant is expected to be finished by the fourth quarter of 2025, with a production capacity of 120 ktpa of mixed hydroxide precipitate (MHP).

Despite the current volatile nickel prices, Andaru expressed optimism, stating that the company believes prices will remain in the USD 15,000 - USD 16,000 per ton range.

"Our focus is on controlling production costs to maintain good and competitive margins. With the current nickel price and our per-unit cash cost, we are optimistic we can overcome these challenges well," Andaru stated.

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