Jakarta. Nickel mining company Vale Indonesia (INCO) announced on Friday it has recorded a profit of $168.5 million in the first half of the year, as pressure intensifies for the government to acquire a commanding stake in the company.

The amount is around $18 million more than the profit in the first half of last year.

The cost of revenue almost doubled to $438.5 million while overall revenue rose by 16.7 percent YoY to $659 million.

Vale said nickel matte production volume increased to 33,691 tons from 26,394 tons in the first half of 2022.

However, the average sale price declined to $19,836 per ton as of June 2023 from $20,899 in the same period last year. 

Vale has been using coal to replace more expensive fuel oil for its burners since April to save costs.

"We plan to adopt more efficiency measures to continue the successful cost-reduction program in the last quarter," Vale Indonesia CEO Febriany Eddy said in a statement.

The government using state-owned mining holdings MIND ID plans to acquire an additional 14 percent stake in Vale Indonesia, the local unit of Toronto-based Vale Base Metals, that will increase the government's total ownership to 34 percent.

But a number of lawmakers and analysts urged the government to acquire a majority stake as "mandated by the constitution", replicating the success in taking over Freeport Indonesia.

Even MIND ID executives themselves said a 34 percent stake in Vale will not grant decision-making power in key areas such as project selection, dividend payout, or capital structure.