Inalum cuts production target by 10%

Inalum cuts production target by 10%

Dow Jones, Singapore

PT Indonesia Asahan Aluminum (Inalum) has lowered its primary
aluminum output target 10 percent to 200,000 metric tons this
fiscal year, a company executive told Dow Jones Newswires Wednesday.

The cut is due to inadequate power supply caused by low water
levels in Lake Toba which company uses for its hydroelectric
power plant, the executive said.

The company previously forecast this fiscal year's output at
222,827 tons. The company's fiscal year started in April.

PT Indonesia Asahan Aluminum has an annual capacity of 225,000
tons and is the sole aluminum producer in Southeast Asian.

The company has run its 600-megawatt power plant at 420 MW
since last year due to low water levels. The previous fiscal
year's output stood at 205,002 tons.

"We can't afford to build a new power plant, and don't...plan
to," the executive said.

The company exports about 60 percent of its production to
Japan. Nippon Asahan Co., a consortium of Japanese companies and
banks, holds a 60 percent stake in the Indonesian company.