Top nickel matte producer PT Vale Indonesia expects to spend about US$120 million on capital this year, lower than initially expected, primarily because of a project delay.
Vale had sought to spend less than $166.6 million this year on capital but further lowered its projection after delaying a plan to rebuild part of its Sorowako nickel smelter in Sulawesi, the country’s nickel mining heartland.
The company moved the start of five-month project from the fourth quarter of this year to the second quarter of next year as a result of logistical delays during the pandemic.
“This will, of course, affect our production next year,” said Vale chief financial officer Bernardus Irmanto at an online public meeting on Wednesday.
Vale, which is traded on the Indonesian Stock Exchange (IDX) under the symbol INCO, disbursed $77.3 million from January to June.
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