Indonesia’s VDNI Nickel Output Rises but Losses Persist in 2024

Indonesia’s VDNI

Higher Nickel Production Fails to Offset Heavy Losses

Indonesia’s Virtue Dragon Nickel Industry (VDNI) increased nickel pig iron (NPI) output in 2024 but still posted significant losses. The company, controlled by China’s Jiangsu Delong Nickel Industry, produced 675,300 tonnes of NPI, a 2.1% rise from 2023. However, VDNI reported operating revenue of ¥6.56bn ($910mn) and a net loss of ¥1.61bn ($224mn).

The losses stemmed largely from an impairment linked to accounts receivable from Jiangsu Delong. The group’s stainless steel plant filed for bankruptcy in 2024, compounding financial pressures. Additionally, currency depreciations in both the Indonesian rupiah and Chinese yuan weighed heavily on VDNI’s results.

Outlook for Recovery in 2025

Despite financial setbacks, VDNI expects profitability to rebound in 2025. The company highlighted improvements in operational performance and plant utilization during 2024. With a nameplate capacity of 100,000 tonnes per year in nickel metal equivalent, VDNI remains a key producer within Indonesia’s fast-expanding nickel sector.

Delong’s control of multiple assets, including Gunbuster Nickel Industry, strengthens its footprint in Sulawesi’s nickel belt. However, challenges such as fluctuating currency values and the aftershocks of Delong’s financial troubles remain significant risks.

The Metalnomist Commentary

VDNI’s case underscores the fragile balance between production growth and financial stability in Indonesia’s nickel sector. Rising output alone cannot shield producers from external shocks such as currency depreciation or parent-company bankruptcies. The industry’s resilience in 2025 will depend on stabilizing financial structures alongside continued production expansion.