Vale to produce 72,000 tons of nickel this year

IDX-listed PT Vale Indonesia (INCO) said it would be able to increase nickel production to 72,000 tons this year following the upgrade of the company?s electric furnace #2 last year, Kontan reported on Wednesday.

The company?s president director Nico Kanter said that it would be quite possible for the company to increase the nickel production to 72,000 tons this year because the company?s smelting facilities have now been able to process up to 73,000 tons of nickel.

Last year, Vale produced 70,717 tons of nickel, a 5.7 percent increase from 66,900 tons in 2011.

Nico said that the company planned to build a new smelting plant in Sorowako, South Sulawesi in order to further increase the company?s processing capacity. With the operation of the new smelter, Vale would have five smelters in 2018.

Vale would spend up to US$2 billion for the construction of the new smelter. ?Our production can reach 120,000 tons a year within five year from now, when the new smelter begins its operation,? he added.

Vale, previously known as PT International Nickel Indonesia, is 58.73 percent owned by Vale Canada Limited, 20.09 percent by Sumitomo Metal Mining Co. Ltd and 21.18 percent by the public.

Vale Indonesia said last week that its unaudited net profits fell 79.4 percent to US$67 million in 2012, from $334 million a year earlier. The company?s sales fell 22 percent to $967 million in 2012 from $1.24 billion in 2011 due to the decline in nickel prices in the world market. (*)