PT Vale Indonesia Posts Strong Performance Amid Major Transformation

PT Vale Indonesia Tbk (INCO) recorded impressive performance throughout the second quarter of 2026, with nickel-in-matte production leaping 19% compared to the previous quarter to 16,153 metric tonnes.

This production surge was the main catalyst for revenue growth of US$290 million, or a 15% increase quarter-on-quarter, whilst also lifting net profit to US$61 million, a jump of 39% from US$44 million in the first quarter.

This achievement would not have been possible without the completion of the Electric Furnace 3 Rebuild Project in June 2026, which increased operational capacity, as well as high cost discipline that succeeded in reducing cash cost of goods sold to US$10,005 per tonne, an improvement from the previous US$10,382 per tonne.

Behind the encouraging production figures, PT Vale is building a more robust business foundation through the operation of three strategic mining hubs. The Bahodopi Block recorded saprolite nickel ore sales of 1.07 million wet metric tonnes (wmt) in the second quarter, whilst the Pomalaa Block posted a significant sales surge from 89 thousand wmt to 496 thousand wmt over the same period.

“The strong performance of these two growth projects demonstrates the success of increasing operational capacity and reinforces our strategy to diversify revenue sources,” said Bernardus Irmanto, President Director and Chief Executive Officer of PT Vale, in an official statement.

Solid financial performance was reflected in EBITDA, which soared 45% quarter-on-quarter to US$116 million, indicating significant improvement in operating leverage. The average realised nickel matte price also strengthened by 4% to US$14,765 per tonne, in line with favourable nickel market fundamentals.

Although energy consumption increased alongside production growth, the company remained able to manage costs effectively. Prices of High Sulphur Fuel Oil (HSFO), diesel, and coal did indeed rise by approximately 25%, 40%, and 12% respectively due to the global geopolitical situation, but PT Vale managed to maintain operational efficiency amid this pressure.

The most historic moment of the quarter was the arrival of the autoclave for the Sambalagi HPAL Project, a vital component of the Morowali Indonesia Growth Project (IGP). On 22 July 2026, PT Vale and its strategic partners GEM Co., Ltd. and EcoPro held a handover ceremony attended directly by the Minister of Investment and Downstream Industry/Head of BKPM and CEO of Danantara Indonesia, Rosan P. Roeslani.

The arrival of this autoclave marks a concrete step in developing an integrated battery raw material value chain in Indonesia. Going forward, PT Vale will accelerate the development of HPAL projects to process limonite ore into Mixed Hydroxide Precipitate (MHP), a crucial intermediate product in the global electric vehicle battery supply chain.

Throughout the second quarter, PT Vale realised capital expenditure of approximately US$116 million to support operational continuity and the development of strategic projects.

Although the cash balance stood at US$111 million as of 30 June 2026, down from US$220 million at the end of March, management affirmed its commitment to prudent capital allocation and disciplined liquidity management.

With total first-half production reaching 29,773 tonnes of nickel matte, along with significant progress on growth projects, PT Vale is in a strong position to capitalise on market opportunities and support the national downstreaming agenda. The company is optimistic it can achieve its annual production target and continue to create sustainable value for stakeholders.