Increased output, higher price boost Inco's earnings
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.