Inco, Antam to extend ore supply cooperation

Publicly-listed nickel company PT International Nickel Indonesia (Inco) said it would extend its cooperation with publicly-listed national diversified mining firm PT Antam.

"The current cooperation agreement with Antam will expire next year but we have agreed to extend our association," INCO President Director Arif S Siregar said Wednesday.

Under the cooperation agreement signed in February 2003 Antam had been buying nickel ore from INCO's work contract area in Pomalaa Timur in Southeast Sulawesi to support its ferronickel production activity in Pomalaa.

PT Antam had since mid-2005 bought a total of 1 million tons of nickel ore from PT INCO.

Arif also said INCO would build the Karebbe dam in Pomalaa district starting next month to increase the capacity of its hydropower plant from 275 MW to 365 MW. INCO would thus use water from the Larona river to raise the power plant's capacity.

The Karebbe dam project would cost US$275 million to US$580 million and was expected to be completed in mid-2010, he said. (bernard)