Vale Indonesia Records Net Profit of US$43.6 Million in Q1 2026, INCO's Business Strategy for 2026
PT Vale Indonesia Tbk (INCO), an integrated nickel mining company and part of the Vale Brasil group and MIND ID (the state-owned mining holding), recorded solid financial performance in the first quarter of 2026 (Q1 2026), despite a planned decline in nickel matte production volume.
According to a press release dated 29 April 2026 submitted to the Indonesia Stock Exchange, net profit stood at US$43.6 million (approximately Rp757.3 billion, based on the Bank Indonesia middle exchange rate of Rp17,378 per US dollar as of 4 May 2026), surging 85% quarter-on-quarter (QoQ) from US$23.6 million (approximately Rp409.7 billion) in Q4 2025.
EBITDA increased 29% QoQ to US$80.1 million (approximately Rp1.39 trillion). This performance has drawn market attention as it demonstrates that cost discipline and higher selling prices were able to offset the previously planned reduction in production volume.
Nickel Matte Production
INCO’s nickel matte production in Q1 2026 was recorded at 13,620 metric tonnes, down from 17,052 tonnes in Q4 2025 and 17,027 tonnes in Q1 2025. This decline was entirely in line with the company’s plans, reflecting the rebuilding of Furnace 3, targeted for completion in the first half of 2026, as well as the impact of the 2026 RKAB approval.
The average realised price of nickel matte jumped 15% QoQ to US$14,213 per tonne (approximately Rp246.9 million per tonne), from US$12,308 per tonne (approximately Rp213.7 million per tonne) in Q4 2025, resulting in total revenue of US$252.7 million (approximately Rp4.39 trillion).
2026 also marks the first full year of nickel matte sales at an 82% payability rate, which could provide better margin visibility for the company going forward.
Competitive Production Costs
On the cost side, the cash cost per unit of nickel matte in Q1 2026 was competitive at US$10,382 per tonne (approximately Rp180.3 million per tonne), slightly higher than US$9,573 per tonne (approximately Rp166.2 million per tonne) in Q4 2025 due to pressure from input commodity prices.
For the nickel ore segment, cash costs per unit remained stable: Bahodopi Block at US$21 per tonne (approximately Rp364,900 per tonne) and Pomalaa Block at US$13 per tonne (approximately Rp225,900 per tonne), including royalties and logistics components. Company management projects further cash cost optimisation as sales volumes from the Pomalaa Block increase.
Three Mining Blocks Strategy: Critical Milestone in 2026
2026 is a transformative year for INCO as the company will operate three mining blocks—Sorowako, Bahodopi, and Pomalaa—simultaneously for the first time.
The foundation of this strategy was laid in the 2025 annual report: throughout 2025, INCO booked revenue of US$990 million (approximately Rp17.2 trillion), up 4% year-on-year (YoY), and net profit of US$76.1 million (approximately Rp1.32 trillion), up 32% YoY, amid pressure from a 7% decline in nickel matte prices to US$12,157 per tonne (approximately Rp211.1 million per tonne).
The success in 2025 was supported by diversification into saprolite nickel ore sales from the Bahodopi Block, which reached 2.31 million wet metric tonnes (wmt) for the year as a new revenue buffer beyond nickel matte.
First Sales of Limonite Nickel Ore
One of the most market-watched strategic realisations in 2026 is the inaugural sales of limonite nickel ore from the Pomalaa Block in early 2026. The Pomalaa Block, which was still in the bulk sampling test phase in 2025, is now entering full operations, marking a significant expansion of INCO’s commercial portfolio.
The High Pressure Acid Leaching (HPAL) project in Pomalaa, with a production capacity of up to 120,000 tonnes of mixed hydroxide precipitate (MHP) per year, has reached approximately 50% construction progress and is targeted for initial mechanical completion in the third quarter of 2026.
This project is part of the national electric vehicle battery supply chain, involving strategic partners Zhejiang Huayou Cobalt and Ford.
First Sustainability-Linked Loan in Southeast Asia’s Mining Industry
On 23 April 2026, INCO signed a Sustainability-Linked Loan (SLL) worth US$750 million (approximately Rp13.03 trillion), becoming the first SLL in Southeast Asia’s mining industry. The funds are focused on developing strategic projects in IGP Pomalaa, Morowali, and Sorowako, while strengthening the company’s ESG credentials in the framework of sustainable financing.
Throughout Q1 2026, capital expenditure amounted to US$139 million (approximately Rp2.41 trillion), while cash and cash equivalents as of 31 March 2026 stood at US$220.1 million (approximately Rp3.82 trillion).
Conclusion
INCO’s performance in Q1 2026 reflects management’s ability to maintain profitability amid planned production adjustments, supported by rising LME nickel prices and cost control discipline. Growth momentum is poised to strengthen in subsequent quarters with the completion of Furnace 3, increased sales volumes from the Pomalaa Block, and progress on the HPAL downstream project—three key catalysts that investors are watching in tracking this nickel mining issuer’s developments.