PT Inco's net profit plummets 74.5 percent<\/p>\n
JAKARTA (JP): Publicly listed nickel producer PT International
\nNickel Indonesia (Inco) said on Friday its net profit had dropped
\nby 74.5 percent to US$6.2 million in 1998 from $24.3 million in
\n1997.<\/p>\n
Company president director Rumengan Musu said on Friday that
\nthe drop in profits was caused by the depressed price of nickel
\nin the world market.<\/p>\n
"The year 1998 was a very difficult year for the nickel
\nindustry. The cash price of nickel on the London Metal Exchange
\nfell 54 percent from March 1997 to the end of last year due to
\nthe economic weakness in Asia and concerns about the short-term
\nnickel supply-demand outlook," he said.<\/p>\n
"Despite the very difficult market situation, Inco still
\ngained profit last year," he said in a statement.<\/p>\n
Musu said the company, which is operating a nickel mine in
\nSoroako, Southeast Sulawesi, suffered a loss of $3.7 million in
\nthe fourth quarter of last year, compared to the loss of $1.1
\nmillion it suffered in the corresponding period of 1997.<\/p>\n
He said the price for nickel in matte averaged $4,034 per ton
\nor $1.83 per pound in 1998 and $3,461 per ton or $1.57 per pound
\nin the fourth quarter of 1998.<\/p>\n
In comparison, price for nickel in matte averaged $5,512 per
\nton or $2.5 per pound in 1997 and $5,071 per ton or $2.30 per
\npound in the fourth quarter of 1997.<\/p>\n
Inco's nickel output reached 35,500 tons in 1998 and 8,600
\ntons in the fourth quarter of the year, compared to 32,000 tons
\nfor 1997 and 3,900 tons in the same period of 1997.<\/p>\n
Musu said the company had almost completed construction of its
\nnew production facilities, with the aim of increasing its annual
\noutput by 50 percent to 68,000 tons of nickel in matte in 2000.<\/p>\n
Construction of the new processing facilities was to be
\ncompleted in the first quarter of 1998 and the new hydroelectric
\nfacilities were expected to be finished in the second quarter of
\nthis year.<\/p>\n
Musu said Inco expected to increase its nickel output to
\n38,000 tons this year, but this target would be dependent on the
\namount of rainfall this year. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-incos-net-profit-plummets-745-percent-1447893297",
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