Inco to increase power capacity

JAKARTA: Publicly listed PT International Nickel Indonesia (Inco), a local unit of Canada-based mining giant Inco Ltd., plans to spend some US$150 million to increase its hydroelectric power generating capacity by 90 megawatts to 356 megawatts.

In its report to the Jakarta Stock Exchange on Friday, the company said the capacity would be expanded by building a third dam located in the company's working contract area in the Larona river near the village of Karebbe in South Sulawesi.

Inco president Bing R. Tobing said Inco would be able to raise its annual production by 25 percent to about 200 million pounds of nickel in matte by 2009 with the increase of power capacity.

At the same time, the company was also expecting to cut unit cash cost by 7 percent, or about 10 U.S. cents and 15 cents per pound, from the current cost of about $1,65 and $1,70, he said. -- JP