Vale Indonesia Feels Impact of Weak Metal and Nickel Markets
Vale Indonesia, Indonesia's largest nickel producer, posted an 80 percent decline in net income compared to 2011. Net income in 2012 totaled US $67.5, significantly down from US $333.8 in 2011. Main reasons for this poor performance were weakened metal and nickel markets due to global economic turmoil, which resulted in lower prices. Its average realized price per metric ton went down 26 percent, while operating costs increased 10 percent.
Production numbers in quarter IV-2012 were good, though. A quarterly production record of 21,306 metric tons of nickel was achieved, resulting in a six percent production volume increase in 2012. Sales volume in 2012 rose five percent accordingly.
Vale Indonesia is a subsidiary of Vale, the world's second biggest mining company, headquartered in Brazil.