Nickel Price Is Uncertain, What Is The Fate Of Vale's Investment?
JAKARTA - CEO of PT Vale Indonesia (INCO), Febriany Eddy ensures that investment remains safe amid fluctuations in world nickel prices. Febri said, during his career at INCO for more than 17 years, world nickel prices tend to change and are unstable. In fact, nickel prices have touched 9,000 US dollars and have reached 50,000 US dollars per tonne.
"The key is that we will not only depend on prices, because we cannot control prices and always move," he said at a media meeting in Jakarta, quoted on Wednesday, March 19.
He added that in making investment decisions, his company focuses on the competitive level of a project and the nickel reputation generated by Vale.
He explained that the competitive level of a project can be seen from the company's capital expenditure or capex and operational expenditure (opex). With world nickel players who can be counted for fingers, Febriany said the company's average is aware of the cost profiles of each company.
"There is a global cost curve, how many quarters he is in. At Vale, this global cost curve becomes a reference. We have to be in the first and second quarters, maximum. We will not invest if he is in the 3rd and 4th quarters," said Febriany.
He further explained that if the price of nickel plummeted, which would be affected would be an inefficient company in managing investment.
"So, very, very important cost and Capex efficiency," he added.
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Second, continued Febriany, in terms of reputation, he highlighted the importance of implementing Environmental, Social, and Governance (ESG) or the company's Environment, Social, and Governance.
According to him, many world markets can only be accessed if the nickel produced is nickel sourced from a company with a good ESG reputation.
"If we have reputable nickel, sustainable nickel, it will be the first choice. So, Indonesia has a lot of nickel. We want to show that we want to be the most competitive, but also the best reputation. So that if people need nickel, the first will look for Indonesia," said Febri.