Inco to increase power capacity

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