Inco reports lower earnings

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)