CVRD to spend $49m in 2008 to expand PT. Inco output

Brazil mining giant Companiha Vale Rio de Doce (CVRD) said on Thursday its Indonesian subsidiary JSX-listed nickel miner PT.Inco would spend in 2008 US$ 49 million on the construction of the hydro-electric plant at Karebbe, on the island of Sulawesi.

This will be third plant built by, PT Inco, and the aim is to produce electricity which will reduce costs and realize the production of 90,000 tonne per year of nickel-in-matte, the company said.

The total cost of Karebbe will be US$ 252 million and start-up is scheduled for second half of 2010, the company said in a release. (alex)