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.