Vale Indonesia Tbk (INCO) Focuses On Exploration To Obtain A Complete Laterite Profile

PT Vale Indonesia Tbk (INCO) reports that its exploration activities are concentrated in areas within its Contract of Work (CoW) scope. Filia Alanda, company secretary of Vale Indonesia, The nickel mining company, which listed in Indonesia in December 2022, is focusing on the Solowako block and the outer Solowako area in the East Luu Regency of South Sulawesi, the Bahodopi block in the Morovali Regency, the Bahodopi block in central Sulawesi, the Pomara block in central Sulawesi, and Kolaka in southeast Sulawesi Regency. "Exploration activities cost $942,964," Filia said in Monday's disclosure.

PT Vale Indonesia Tbk (INCO) in Lemo-lemo Hill, Lemo-lemo Central and Lingkona in the Sorowako peripheral block The Hill's 200 and 100 m resource development drilling program was explored using the HQ-3 core drilling method. The drilling program supported mining activity at 50 m at Konde South Hill in the Sorowako West block. 25m at Petea D1C5 and Petea C0C1 Hills in the Petea block. "All drilling activities are aimed at obtaining a complete laterite profile," Filia said.

INCO also conducted geophysical surveys through the geoelectric method (ERT), in Mira Hill, Sorowako East Block, Geoelectric measurements were also made in the Lemo-lemo South Hill and Loeha Block Sorowako Outer Area using the UltraGPR method.

Vale Indonesia conducted these exploration activities with a drilling contractor acting as a third party. The amount of resources and reserves estimated based on the test results are still calculated using the ordinary Kriging method in the Sorowako block.

For the action plan, the Sorowako block will continue drilling to a depth of 50 metres at Lembo East Hill in the Sorowako West block and 25 metres at Petea C0C2 and Petea D1C5 Hills in the Petea block. At the same time, the Sorowako outlying block will continue drilling at 200 and 100 m depths in Lemo-lemo Hill, Lemo-lemo Central and Lemo-lemo North Hill.

Geophysical surveys using the geoelectric method (ERT) will continue at Mira Hill (Sorowako East Block) and Lembo East Hill (Sorowako West Block). At the same time, geophysical surveys using the UltraGPR method will continue at Loeha Hill (Sorowako peripheral block).

Vale Indonesia has launched exploration activities following positive signals from Energy Minister Arifin Tasrif regarding the extension of Vale Indonesia's Work Contract Licence to a Special Mining Operations Licence (IUPK). INCO's contract extension is indeed in the government's hands, but must be accompanied by Vale's obligation to build the smelter.

The House of Representatives Working Committee is currently discussing changing Vale Indonesia's contract status to IUPK. INCO's contract expires on December 27, 2025. Vale Indonesia's ongoing concession of land use is not optimal, as it only reaches 16,000 hectares from its 118,000 hectares nickel mining concession in Sulawesi.

The move came after the governments of South Sulawesi, Central Sulawesi and Southeast Sulawesi provinces, where INCO is located, denied the company an extension of its regional licence to operate. The South Sulawesi provincial government argued that INCO could manage only 7,000 hectares (ha) or less than 10 percent of the land concession area granted by the government, despite having managed the concession for 54 years. More than 100,000 hectares of Vale Indonesia's contract area is idle.

Another reason for the rejection was Vale's lack of commitment to increase capacity. Indeed, in the amendment to the contract, Vale Indonesia must increase its production capacity by 25 per cent from the average between 2009 and 2013. According to South Sulawesi's provincial government, Vale should have produced 87,500 tonnes in 2021, but only 65,388 tonnes. As such, the exploration is Vale's response to requests from three provinces to increase the company's contracted area activities.