Vale sees flat output next year
Wednesday, November 29 2017 - 12:51 PM WIB
IDX-listed integrated nickel producer PT Vale Indonesia Tbk plans to maintain nickel production next year at the same volume as targeted for this year amid lingering concern over the government?s policy of allowing export of the commodity.
Vale Indonesia President Director Nico Kanter said on Wednesday that production next year is projected to reach 80,000 tons of nickel in matte, the same as this year?s target.
?Frankly speaking, I?m still concerned (with the export policy),? he told Petromindo.com.
The government introduced in January of this year a new policy allowing mining firms to resume export of low grade nickel ores on certain conditions, which some said would further undermine the price of the commodity in the global market.
Nico said that the low grade nickel export permits issued by the government have so far reached a volume of more than 20 million tons, describing this as a ?serious concern? for the company. ?I?m concerned with the impact on price,? he said.
He said that the export policy would only benefit Chinese nickel processing industries as they could obtain cheaper raw material, and will only discourage them from making further investment in nickel smelters in Indonesia.
He expects the government to limit the export volume to help stabilize price of nickel and maintain investment climate in the domestic smelter sector.
Editing by Reiner Simanjuntak