Asahan reduces operation

Asahan reduces operation

TOKYO (Reuters): Nippon Asahan Aluminum Co Ltd said yesterday
it had further reduced operations at its smelter in Indonesia due
to falling water levels in a lake which supplies power to the
plant.

However, an official at Nippon Asahan, which owns 59 percent
of PT Indonesia Asahan Aluminum, would not disclose how many
furnaces were currently in operation.

"The number has come down quite a lot from 364 at end-April.
But we cannot give you details at this point as we're still in
talks with the Indonesian government," he said.

The smelter in northern Sumatra has an annual capacity of
220,000 tons and about 510 furnaces.

Asahan has said it was talking with the Indonesian government
over additional production cuts from its 1998/99 plan of 175,100
tons put together in April.