Inco Ltd to extend RI deal

Inco Ltd to extend RI deal

TORONTO (Reuter): Inco Ltd expects to sign an extension to its
work contract at its 58-percent owned PT International Nickel
Indonesia next week during Canadian Prime Minister Jean
Chretien's Asian trade mission.

The original expiry date for the contract, required for all
foreign companies operating in Indonesia, was 2008 but Inco
reached agreement in principle to extend it to about 2025 with
provision for further extension, Inco spokesman Bob Purcell said.

The signing date is set for the week of Jan. 15 during
Chretien's trade mission to Asia. Chretien is scheduled to visit
Jakarta on Jan. 16 and 17.

Purcell said the extended contract revises some of the tax
breaks previously allowed by the Indonesian government.

"We had a lot of lean years at PT Inco in the early years, but
now we're turning a profit," Purcell said.

PT Inco produced a record 100 million pounds of nickel matte
in 1994. Net earnings rose to US$31.6 million for the third
quarter this year and US$70.6 million for the first nine months
compared to US$8.6 million in the third quarter and US$24.7
million for the first nine months of 1994.

An C$500 million expansion is underway to boost ouptput by
half to about 150 million pounds of nickel matte per year.