Inco reports lower earnings

JAKARTA (JP): Publicly listed mining company PT International Nickel Indonesia (Inco) announced 1998 first-half net earnings of US$10.7 million, or four cents per share, compared to $17 million or seven cents per share during the same period last year.

The company said in a statement that the decrease in net earnings was due to lower nickel price realizations, partially offset by reduced unit production costs and higher nickel deliveries.

Inco's realized price for nickel in matte averaged $1.95 per pound in the second quarter of this year, compared with $2.64 per pound in the corresponding 1997 period, it pointed out.

It added that for the first half of this year, the realized price averaged $2.02 per pound, compared with $2.16 per pound in the first half of last year.

It said that production of nickel in matte for the second quarter of 1998 was 10,000 metric tons (22.2 million pounds), compared with 8,500 tons in the corresponding 1997 period. (rei)