Nickel miner PT Vale Indonesia booked US$67.5 million profit in 2012, down from $333.8 million in 2011.

Vale Indonesia said in a statement that it produced 21,306 tons of nickel matte in the fourth quarter of 2012, the highest quarterly production recorded since the company began operations.

The company's Indonesia spokesperson, Iskandar Siregar, said on Wednesday that despite the record production, the company booked only $967.3 million revenue in 2012, down from $1.24 billion in 2011, due to low nickel prices.

He said Vale's cost of revenue in 2012 had increased 10 percent, particularly due to the price increase of high sulfur fuel oil (HSFO)and higher furnace maintenance and repair costs in the first quarter of 2012.

'That's why the company only recorded profit of $67.5 million from its operations in 2012, lower compared to the previous year's profit, which reached $333.8 million,' said Iskandar, explaining the outcome of Vale's annual shareholders meeting in Jakarta on Tuesday.

During the meeting, the shareholders also agreed to retain $6.7 million as a general reserve.

The distribution of the final 2012 dividend worth 25 US cents per share, or about $25 million in aggregate from the company's net income, was also agreed upon at the meeting.

'The final dividend will be paid on May 31 to the stakeholders on the stakeholders' list on May 17,' said Iskandar. (ebf)

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