JAKARTA – After securing the extension of its Special Mining Business License (IUPK) last May, PT Vale Indonesia Tbk (INCO) is now confident to be able to attain nickel in matte production target of 70,800 wet metric tons (wmt) in 2024.

According to Rizky Andhika Putra, Chief Financial Officer of INCO, the company managed to score slight increase in nickel in matte production in H1 2024 of 3% year-on-year (yoy).

As mentioned in Public Expose Live 2024 of INCO today (26/8), until the first semester this year, INCO has produced 34,665 tons of nickel in matte, or equal to 49% of 2024 production target.

It is worth mentioning that INCO is now owning a concession area of up to 118,017 hectares, most of which are dominated by Sorowako area in South Sulawesi.

“Our mineral reserves grew significantly as of December 2023, by up to 60% yoy. It is driven by the surge in saprolite ore reserves from 334,08 million wmt in December 2022 to 493,66 million wmt in December 2023,” said Febriany Eddy, President Director of Vale Indonesia.

With this massive mining concession, Vale Indonesia further reveals its commitment to be more aggressive in developing this area, so that it may provide nickel ores and distributes them to local plants in Indonesia.

“Vale’s sustainable mines will ensure good nickel ore supply for domestic factories. Furthermore, it may also add into Vale’s top-line quite significantly,” Eddy continued.

Until June 2024, INCO reported selling its nickel ores only to Vale Canada Limited (VCL), which generated USD 383 million, as well as to Sumitomo Metal Mining Co Ltd (SMM), and collected USD 95.74 million.

With this production target, the management is estimating total revenue that goes accordingly to the average selling price, which is estimated to be relatively stagnant towards the price seen in June 2024, of USD 14,214 per metric ton.

“Our cash cost, based on the achievement in H1 2024, will be maintained at under USD 10 thousand per ton, thus keeping the profitability rate stable,” added Putra on the same occasion. (ZH)