PT Vale’s Nickel Production Surges 19%, Bahodopi and Pomalaa Drive Growth
Thu 30 Jul 2026, 08:49 AM
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PT Vale Indonesia Tbk (INCO) reported higher nickel matte production in the second quarter of 2026. Improved operational performance following the completion of the Electric Furnace 3 rebuild project was the main driver behind the production increase, strengthening the company's growth foundation amid the dynamics of the global nickel industry.
According to its earnings report released on Thursday (July 30, 2026), PT Vale produced 16,153 metric tons of nickel matte during the April-June 2026 period. The figure was up about 19% from production of 13,620 tons in the first quarter of 2026. Cumulative production in the first half of 2026 reached 29,773 tons.
The increase in production was supported by the completion of the Electric Furnace 3 rebuild project in June 2026. The company said the project was completed while maintaining workplace safety standards and operational reliability, leaving it optimistic about achieving its production target for the full year.
In addition to higher nickel matte production, PT Vale also recorded significant growth in its nickel ore sales business through its two strategic projects in Bahodopi and Pomalaa. At the Bahodopi Block, saprolite nickel ore sales volume reached 1.07 million wet metric tons (wmt) in the second quarter of 2026, up from 886,094 wmt in the previous quarter. Total sales in the first half therefore reached 1.96 million wmt.
Meanwhile, the Pomalaa Block posted an even sharper increase. Nickel ore sales rose to 495,601 wmt in the second quarter of 2026 from just 88,983 wmt in the first quarter. Cumulative sales volume in the first half reached 584,584 wmt, far higher than 147,491 wmt in the same period last year.
The company said the higher volumes from Bahodopi and Pomalaa demonstrated the success of its expansion strategy through the development of three mining hubs in Sorowako, Bahodopi, and Pomalaa. The strategy not only increases production capacity but also broadens the company's revenue sources beyond its core Sorowako operations.
Stronger operational performance also had a positive impact on financial results. PT Vale posted revenue of USD 290 million in the second quarter of 2026, up about 15% from USD 253 million in the previous quarter. The increase was driven by higher production and a rise in the average realized nickel matte price to USD 14,765 per ton.
In terms of profitability, EBITDA rose 45% quarter on quarter to USD 116 million from US$80 million in the first quarter. Net profit increased 39% to USD 61 million, compared with USD 44 million in the previous period.
PT Vale Indonesia President Director and Chief Executive Officer Bernardus Irmanto said the results reflected the company's success in strengthening its operational foundation while preparing for long-term growth.
"The arrival of the autoclave marks a significant step forward in developing Indonesia's integrated battery raw materials value chain and reinforces PT Vale's commitment to supporting the national downstream processing agenda," Bernardus said.
He added that PT Vale will continue accelerating the development of its High Pressure Acid Leach (HPAL) project to process limonite ore into Mixed Hydroxide Precipitate (MHP), a key raw material for the electric vehicle battery industry. At the same time, the company continued investing in strategic projects, with capital expenditure of around USD 116 million during the second quarter of 2026 to strengthen production capacity and support sustainable growth.
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