Inco optimistic to reach nickel production target despite technical problem

The management of PT International Nickel Indonesia (Inco) is optimistic that the 2002 nickel production target will reach 130 million pounds as initially targeted despite a problem in one of the company?s hydro power plants, Bisnis Indonesia reported on Tuesday.

The company?s president and chief executive officer Edward W. Hodkin said on Monday that the company was also committed to paying its debts according to initial schedules despite the problem.

The company?s hydro power plant in the upstream of river Sungai Larona has stopped operation due to a leakage in the 7-kilometer canal which supplies the water to generate the power plant. The water from the canal has been redirected to the other hydro power plant in Balambano to allow maintenance works which are expected to be completed within four to seven days.

Acording to Hodkin, the company?s processing plants have been operating at 40 percent capacity due to the incident.

He said Inco managed to book profits of about US$11.2 million as of the second quarter of this year or 51 percent higher than those in the same period last year, which only reached about US$7.4 million.

He attributed the higher profits on the strengthening of nickel prices in international markets. (*)