Nickel miner Vale Indonesia plans to secure between $1 billion and $1.2 billion in external financing over 2026–2027 to fund its expanding mining and smelter operations, a senior company official said on Friday.
The initial round of funding, estimated at around $500 million, is expected to come from bank loans in early 2026, with a potential bond issuance planned for 2027, according to Andaru Brahmono Adi, Vale Indonesia’s head of corporate finance and investor relations.
“This external funding will be used toward funding our projects. Now we are developing three mines… we are also building HPAL smelters with our partners,” Andaru told.
Vale Indonesia is currently developing nickel mines across Sulawesi island, with operations in Bahodopi expected to begin later this year, followed by Pomalaa in 2025. The country has seen a surge in domestic nickel processing in recent years as demand rises for the metal, which is a key component in electric vehicle batteries.
The company is also constructing high-pressure acid leaching (HPAL) smelters in collaboration with several major industry players, including U.S. automaker Ford, China’s Zhejiang Huayou Cobalt, and battery materials producer GEM. The projects align with Indonesia’s broader push to develop a domestic EV battery supply chain and increase value-added production of its mineral resources.