Inco will not exploit SE Sulawesi's nickel<\/p>\n
JAKARTA (JP): PT International Nickel Corporation Indonesia
\n(Inco), a major Canadian nickel company operating in South
\nSulawesi, will only exploit nickel deposits in Soroako, one of
\nthe company's mines in Sulawesi, as the other mines were declared
\nnot to be commercially feasible.<\/p>\n
Thomas B. Sitepu, Inco's former finance director, made the
\nremark yesterday in commenting on Southeast Sulawesi Governor La
\nOde Kaymuddin's request to Vice President Try Sutrisno for
\nreviewing the company's working contract in Southeast Sulawesi,
\nclaiming that Inco had not exploited the province's nickel
\ndeposits.<\/p>\n
\"With the sluggish nickel prices and nickel oversupply in the
\ninternational market we find that exploitation in Southeast
\nSulawesi is unfeasible,\" he told reporters after the annual
\nshareholders meeting of the company.<\/p>\n
At the meeting Sitepu resigned from his post as finance
\ndirector. The shareholders appointed Martin. H. Robinson to
\nreplace him and M. V. Whyshynsky to replace Robert Barton as the
\ndirector of operations.<\/p>\n
However, Sitepu told The Jakarta Post that the company had
\nincreased its capacity in its Soroako mine in South Sulawesi
\nprovince from 75.7 million pounds to 100 million pounds annually.<\/p>\n
\"The capacity increase in Soroako was aimed at anticipating
\nthe company's long term nickel price projection,\" he added.<\/p>\n
The shareholders also agreed on the proposed 1993 dividends at
\n5 US cents per share to be paid on June 1.<\/p>\n
Inco has operated in South Sulawesi since July 1968 under a
\nworking contract which will expire in the year 2008.<\/p>\n
Omri Samosir, Inco's Administration Director said that his
\ncompany had proposed that the government extend the working
\ncontract for another 15 years.<\/p>\n
The company's after tax profit fell from US$36.1 million in
\n1992 to $10.9 million last year because its net sales decreased
\nfrom $192 million in 1992 to $154 million last year.<\/p>\n
The decrease in after tax profits and sales figures were
\ncaused by the fall of nickel prices per kilogram from $5.53 in
\n1992 to $4.27 last year.<\/p>\n
The company's production decreased from 36,300 tons of nickel
\nin matte in 1992 to 34,400 tons last year and its nickel sales
\ninched upward from 34,300 tons in 1992 to 35,800 tons in 1993.
\n(03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/inco-will-not-exploit-se-sulawesis-nickel-1447893297",
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