Oversupply Of Nickel, Vale Makes Sure Not To Be Affected By Price Reduction

President Director of Vale Indonesia Bernardus Irmanto. (Photo: ANTARA)

JAKARTA - PT Vale Indonesia Tbk (INCO) ensures that the oversupply of nickel that occurs will not affect Vale's nickel price.

Vale Indonesia President Director Bernardus Irmanto said, as one of the leading nickel companies, his party is trying to keep Vale's nickel competitive amid the shadow of falling prices.

"How do we try to stay competitive. Both for operations in Sorowako and for new projects, ensuring that capital intensity is very competitive," said Anto in a Public Expose, Thursday, September 1.

Anto explained, actually nickel prices continue to fluctuate from time to time. At certain times, entrepreneurs will find nickel prices falling and then will increase over time

"So at a certain point it will be sharp balancing and then dish correcting too. If for example we can ensure our operations in Sorowako and later new operations that we will have once the project is completed, it will be in the first quarter," he explained.

If the price of nickel continues, Anto will have the most impact on nickel companies in the third and fourth tiers.

As for Vale, Anto said, this company is on tier one so it will not be affected by nickel prices at a certain level.

"So when price is rebounded, we are also in quotes as survivors in the existing nickel price cycle," he said.