Increased output, higher price boost Inco's earnings
The Jakarta Post, Jakarta
Nickel mining company PT International Nickel Indonesia's (PT Inco Indonesia) net earnings almost tripled in the first half of this year, thanks to increased output and the higher price of nickel.
At its extraordinary general meeting of shareholders on Thursday, PT Inco reported a net earning of US$36.8 million in the first six months of this year, compared to $12 million in the same period last year.
The earning was boosted by a 6-percent increase -- or 73.6 million pounds -- in output in the first half, from 69.3 million pounds in first six months in 2002.
The rise in average nickel price from $2.20 per pound to $2.86 per pound further boosted the company's earning.
PT Inco Indonesia, one of the world's largest nickel producers and one of the first foreign companies to invest in the country's mining sector, is a subsidiary of Canadian nickel giant Inco Limited. The company operates nickel mines in Soroako, Luwu regency, South Sulawesi.
Also during the general shareholders meeting, Inco appointed Bing R. Tobing as its new President Director, replacing Edward W. Hodkin.
Hodkin, who served PT Inco Indonesia for more than 12 years and was appointed president director, president and chief executive officer in 2002, plans to return to Canada.
Bing said he would continue the programs conducted by the previous board of directors by focusing on financial performance.
He said the board would settle the company's loans to establish a healthy cash flow.
Bing is optimistic that the company can surpass its 140- million-pound production target for this year, particularly given the completion of its new power facilities.
"Moreover, we won't have any trouble with water supplies for our hydropower (plant). Hopefully, we can produce more than our target," he said.
In addition to Bing, the shareholders also appointed James K. Gowans as PT Inco Indonesia's new Vice President, and Eddie A. Arsyad as a director to replace Andre C. Daenuwy, who will retire.