Vale records 30% increase of production in Q2

IDX-listed nickel producer PT Vale Indonesia Tbk reported that production of nickel reached 16,563 tons nickel in matte in the second quarter, increased 33 percent compared to 12,431 tons in Q1.

The increase in production was due to the return to normal of production capacity of four electric furnaces after a major upgrade and shutdown which began in early of November 2011.

The company said that it delivered 30 percent more nickel in matte to its customers in the second quarter than in the first quarter of 2012, from 12,514 tons to 16,250 tons.

However, production and sales volumes in the first half of this year were 17% and 18% lower respectively compared to results of the first half of 2011.

?The company is positive about its increased production capacity going forward as it produced more than 7,000 tons of nickel in matte in June,? the company?s quarterly report said, adding the average realized price for the second quarter of 2012 was US$13,816 per ton, which was 11 percent lower than the 1Q12 average realized price.

Editing by Adianto P. Simamora