Inco agrees to increase community development funds

Publicly-listed nickel producer PT International Nickel Indonesia Tbk (PT Inco) is ready to raise its budget for community development program if the government approves its request to increase nickel production to 200 million pounds or 25 percent by 2009, the Investor Daily Indonesia newspaper reported in its Tuesday edition.

Inco now spends US$1.5 million per year to develop the welfare of community living near its mining operations in South Sulawesi.

"In fact, the government has set several conditions for the approval of the expansion plan. Aside from the development of the mining area, they (the government) asked us for a rise in royalty fee and the provision of community development funds.

"We only want to increase the amount of community developement funs," Inco's director for government relations Sri Kuncoro told the paper recently in Jakarta.

But Kuncoro did not to disclose how big the community developments funds will increase, while saying the amount must be adjusted with the company's income.(*)