Inco in Pomalaa continues to operate despite closure threat

JSX-listed PT International Nickel Indonesia (Inco) has expressed its objection to the threat issued by local public prosecution office to close down its concession area covering some 26,000 hectares of land in Pomalaa, Southeast Sulawesi for operating in a protected forest area.

Inco?s CEO Arif S Siregar acknowledged that the company had received a letter from local public prosecution office, asking Inco to close down its concession areas because the mining was located in a protected forest area.

Despite the closure threat, Inco would continue to conduct mining activities in the areas given that under the contract of work (CoW), which the government issued in 1968, the government had permitted Inco to do mining activities in the areas, Siregar told Petromindo.com.

Inco?s concession area in Pomalaa has a nickel output of 1 million ore nickel per year. The ore is sold to a ferronickel smelter plant FeNi III owned by state-owned mining firm PT Antam located in Pomalaa as a feeder.

Inco Limited has 61 percent shares in PT Inco, a publicly listed nickel miner that operates a nickel mining complex in Sorowako, South Sulawesi. (godang)