Vale Seeks RKAB Revision After Only 30% Approval Threatens HPAL Projects

JAKARTA, Investortrust.id — PT Vale Indonesia Tbk or INCO said on Monday, Jan 19, 2026 in Jakarta that only 30 percent of its proposed 2026 work plan and budget has been approved by the Ministry of Energy and Mineral Resources, prompting the company to seek a revision as the quota falls short of supporting its major downstream nickel projects.

The limited approval followed weeks of regulatory uncertainty that had earlier forced Vale to temporarily halt mining operations due to the absence of a legal basis for 2026 activities.

President Director and Chief Executive Officer Bernardus Irmanto told lawmakers that the approved quota was insufficient to meet ore supply commitments for Vale’s high pressure acid leaching projects in Pomalaa, Morowali, and Sorowako.

“So what we are asking for support on is the mining or ore production quota from our mines in Pomalaa, Bahodopi, and Sorowako,” Bernardus said during a hearing with House Commission XII.

He said Vale needed to secure adequate ore volumes not only for steady operations but also for initial stockpiles ahead of commissioning its downstream facilities.

Bernardus said the Pomalaa HPAL project in Southeast Sulawesi, developed with partners Huayou and Ford, is targeting mechanical completion in August 2026, making early certainty on ore supply critical.

“So hopefully we at Vale can get the opportunity to submit an RKAB revision and obtain sufficient volumes to meet our commitments to partners and to our shareholders,” he said.

The company did not disclose the exact production volume requested for 2026, citing ongoing adjustments in line with project timelines that differ materially from 2025 operations.

“Of course it is different from 2025, because the scope of work in 2026 is different, especially as these plants are expected to be completed in the third and fourth quarters,” Bernardus said.

The partial approval marked a shift from earlier statements by the Energy and Mineral Resources Ministry, which had said Vale’s 2026 plan was still under correction due to production adjustments.

Director General of Minerals and Coal Tri Winarno previously said the delay stemmed from technical revisions following the government’s move to annual RKAB approvals instead of the previous three year scheme.

“RKABs still need some corrections, mainly related to production, but they are almost done,” Tri said earlier this month.

Unlike other miners that could rely on prior multi year approvals until March 31, 2026, Vale faced a unique situation after seeking an extension, leaving its 2026 RKAB temporarily vacant.

The regulatory gap forced Vale to suspend mining operations across all its special mining permit areas to ensure compliance with prevailing laws.

Following the issuance of the 2026 RKAB, Vale confirmed that operations and construction activities had resumed in Sorowako, Pomalaa, and Bahodopi, with a renewed focus on safety and regulatory discipline.

“With complete licensing in place, all our activities are now running normally, compliantly, and sustainably,” Bernardus said in a separate statement.

Vale said the annual RKAB framework would strengthen production discipline, governance, and long term sustainability for Indonesia’s nickel industry.

The company said continued operations would ensure supply continuity for domestic processing and refining, reinforcing Indonesia’s downstream ecosystem and electric vehicle supply chain.

Backed by more than five decades of operations in Indonesia, Vale said it remains committed to contributing through taxes, non tax state revenue, job creation, and long term low emission investments.

The RKAB revision request now stands as a key test for Indonesia’s downstreaming policy, as supply constraints could ripple through strategic HPAL projects tied to global battery and EV demand.