JAKARTA – PT Vale Indonesia Tbk (INCO), an integrated nickel mining company, reported capital expenditure (capex) deployment of USD 118.5 million at the end of June 2024, or equal to 29.6% of total capex budgeted this year.

In Q1 2024, INCO realised USD 57.5 million or capex, while in Q2 2024, capex realisation hit USD 61 million.

According to Rizky Andhika Putra, Chief Financial Officer of INCO, the company has allocated approximately USD 400 million for its capital expenditure.

“It will be split into two categories, namely expansion plan, such as in Pomalaa, as well as sustaining capex for our operational area in Sorowako,” added Putra during Public Expose Live 2024 of INCO today (26/8).

Based on the presentation of Muhammad Asril, Chief Project Officer of INCO, on the same occasion, this year, Vale is said to currently focus on optimising nickel production in Sorowako, as well as the development of several HPAL projects in Sorowako and Pomalaa, as well as new operational area in Bahodopi.

“Bahodopi mine is projected to be completed in Q3 next year, while Pomalaa is targeted for commercial operation in Q1 2026,” said Febriany Eddy, President Director of Vale Indonesia.

In addition, for HPAL project in Sorowako, Eddy claimed to seek technology partner so that the facility can officially begin operation. “At the end of this year, or no later than Q1 2025, we hope for good news,” she said.

The management believes that these planned development and optimisation projects are indeed in line with the spirit to boost nickel downstreaming, as ordered by the government. “Downstreaming will continue to take place,” Eddy asserted firmly.

It is worth mentioning that with these projects piling up, the management admits that the dividend allocation for this year should be reconsidered carefully. “As we have quite a few of ongoing development agendas,” said Putra.

However, Putra then said that these developments are intended to generate added value to the company, and will be able to scale up the size of the company in the long run. (ZH)