Japan’s Sumitomo Metal Mining to exit Indonesian Pomalaa nickel partnership with Vale

Japan’s Sumitomo Metal Mining to exit Indonesian Pomalaa nickel partnership with Vale

After a disagreement over construction scheduling and costs, the partners will no longer work together on the 40ktpy nickel mixed sulphide precipitate project. 

Blue View

SMM and Vale Indonesia, which is 44% owned by Vale, had planned to build an HPAL nickel plant at Pomalaa in south Sulawesi.  The plant was set to produce 40ktpy of nickel in MSP.  Vale had intended to start production this year, with construction due for completion in 2026.  However, the two partners have now parted company, citing some differences regarding construction scheduling and costs.

The news means that SMM, a key supplier to Toyota and Panasonic, will need to find a new way to help reach its long-term target of boosting annual nickel output from 80ktpy to 150ktpy.  Meanwhile, Vale Indonesia is considering continuing the project with its other partners.  It is expected that SMM will maintain its 15% stake in Vale Indonesia.