Vale Indonesia (INCO) Posts Net Profit of Rp1.27 Trillion Throughout 2025
PT Vale Indonesia Tbk. (INCO) recorded a net profit of US$76.1 million, equivalent to approximately Rp1.27 trillion (at an exchange rate of Rp16,720 per US dollar) throughout 2025, representing a 32% increase compared to the previous year, as operational performance remained solid and cost efficiency was maintained amid pressure from global nickel prices.
Based on the company’s performance report, INCO’s nickel in matte production throughout 2025 reached 72,027 metric tonnes, an increase compared to production of 71,311 tonnes in 2024.
On a quarterly basis, fourth quarter 2025 production was recorded at 17,052 tonnes, or approximately 12% lower than the 19,391 tonnes produced in the third quarter of 2025. This decline was primarily attributable to the commencement of reconstruction of Furnace 3 in November 2025, which is targeted for completion in May 2026.
Compared to the same period the previous year, when production reached 18,528 tonnes in the fourth quarter of 2024, fourth quarter 2025 production was somewhat lower. However, on an annual basis, production continued to show improvement compared to the previous year.
Beyond its primary nickel matte production, Vale has also expanded its business portfolio through the sale of saprolite nickel ore from the Pomalaa and Bahodopi blocks.
Throughout 2025, saprolite ore sales reached 2.31 million wet metric tonnes (wmt), with the highest monthly volume occurring in October at 516,167 wmt. Overall, the Bahodopi Block contributed the largest share to total saprolite ore sales throughout the year.
In terms of shipments, Vale’s nickel matte volume in 2025 was recorded at 73,093 tonnes, an increase from 72,625 tonnes in 2024.
This operational performance also supported EBITDA of US$228.2 million throughout 2025, slightly higher compared to the previous year.
However, on a quarterly basis, fourth quarter 2025 EBITDA was recorded at US$61.9 million, down 17% compared to the previous quarter, primarily due to lower production volumes.
Meanwhile, the average realisation price of nickel matte in 2025 was recorded at US$12,157 per tonne, down 7% compared to US$13,086 per tonne in the previous year.
Despite operating in a weaker price environment, the increase in nickel matte payability rates that took effect from July 2025 as well as the rise in shipment volumes successfully drove Vale’s revenue to US$990.2 million, up 4% compared to US$950.4 million in 2024.
On a quarterly basis, the company’s revenue in fourth quarter 2025 was recorded at US$284.8 million, up approximately 2% compared to the previous quarter, driven by a moderate recovery in nickel prices. In terms of costs, Vale continued to maintain efficiency despite undertaking major maintenance work on one of its furnaces.
Cash cost per unit of sales was recorded at US$9,339 per tonne in 2025, marginally lower than US$9,374 per tonne in 2024. This figure also represents the lowest annual cash cost level in the past four years, down from approximately US$11,201 per tonne in 2022.
The cash cost for the company’s nickel ore business remained relatively stable in the range of US$17–US$19 per tonne, including royalty and logistics costs for mixed saprolite ore.
Throughout the year, Vale allocated capital expenditure of US$485.9 million, up 46% compared to US$332.1 million in 2024. This increase was primarily used for development projects and sustaining capital requirements.
As of 31 December 2025, the company held a cash balance of US$376.3 million, which is considered sufficiently solid to support future growth projects.
Operational Challenges
In 2025, Vale faced several operational challenges, including an oil pipeline leak incident in August 2025 which presented one of the significant operational tests for the company.
Despite this, Vale recorded several important achievements, including the commencement of nickel ore sales from Bahodopi in July 2025 which opened a new revenue stream beyond nickel matte.
Additionally, the company also noted progress in negotiations for increased nickel matte payability as well as successfully securing premiums for nickel ore sales.
In terms of sustainability, Vale noted improved ESG performance with a Sustainalytics risk rating of 23.7 as of November 2025, positioning the company as one of the highest-ranked mining companies in Indonesia.
Going forward, Vale is strengthening its strategic focus through the development of mining projects and downstream facilities in partnership with joint venture partners.
One such project is at Pomalaa, which has currently achieved approximately 60% progress in mining development. The Pomalaa HPAL project has also reached approximately 50% construction stage, with the arrival of four autoclave units and the installation of the first unit.
The project is targeted to achieve first mechanical completion in the third quarter of 2026.