Inco has normal operations

Inco has normal operations

SINGAPORE (Reuters): The mine and smelter operations of PT International Nickel Indonesia in Saroako, central Sulawesi, are working normally, Ted Hodkin, the firm's chief operating officer, said on Monday.

"It's all normal here. You have to keep in mind we are in a relatively isolated location," he told Reuters by telephone from Saroako.

The Indonesian subsidiary of Canadian miner Inco Ltd is carrying out a major expansion project that will lift nickel matte output (78 percent nickel-contained) to 150 million lbs a year.

Output this year is likely to approach 100 million lbs after 70 million last year when drought reduced its hydro-electric power.

"We are still not right up to full capacity, but the rains have been heavier over the last week and we expect production to approach 100 million lbs this year," Hodkin said.

The nickel smelter expansion should be finished by the end of this year and output in 1999 should be between 100 and 150 million lbs as the new facility gets up to speed, he added.