PT Vale Indonesia Posts Strong Performance Amid Major Transformation

PT Vale Indonesia Tbk (INCO) posted an impressive performance during the second quarter of 2026, with nickel in matte production soaring 19% compared to the previous quarter to reach 16,153 metric tons. This production surge served as the main catalyst for revenue growth, which rose 15% quarter-on-quarter to US$290 million, while net profit jumped 39% to US$61 million from US$44 million in the first quarter. The achievement was supported by the completion of the Furnace 3 rebuild project in June 2026, which increased operational capacity, and disciplined cost management that reduced the cash cost of goods sold to US$10,005 per ton from US$10,382 per ton. Beyond 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 tons (wmt) in the second quarter, while the Pomalaa block saw sales surge from 89,000 wmt to 496,000 wmt in the same period. The strong financial performance was reflected in EBITDA, which soared 45% quarter-on-quarter to US$116 million, indicating significant operating leverage improvement. The average realised nickel matte price also strengthened by 4% to US$14,765 per ton, in line with conducive nickel market fundamentals. A historic milestone this quarter was the arrival of the autoclave for the Sambalagi HPAL Project, a vital component of the Indonesia Growth Project in Morowali. The handover ceremony was attended by the Minister of Investment and Downstreaming, who also serves as CEO of Danantara Indonesia, Rosan P. Roeslani. This marks a concrete step in developing an integrated battery raw material value chain in Indonesia, as the company accelerates HPAL projects to process limonite ore into Mixed Hydroxide Precipitate (MHP), a crucial intermediate product in the global electric vehicle battery supply chain. PT Vale realised capital expenditure of approximately US$116 million during the quarter to support operational sustainability and strategic project development. With total first-half nickel matte production reaching 29,773 tons and significant progress on growth projects, the company remains in a strong position to capitalise on market opportunities and support the national downstreaming agenda.