Inco restarts diesel-fired power plant to ramp up output

IDX-listed nickel miner PT Inco said it has restarted its diesel-fired power plant in a bid to increase production and to capitalize improving nickel price.

President Director Arif Siregar said on Tuesday that the diesel power plant has been reactivated to catch up for lost of production in the past quarters and to ramp up 2010 production.

Inco was forced to shut down its entire diesel power plant and relied entirely on hydro power as plummeted nickel price had caused production using diesel power plant uneconomical.

?Inco is in the ramp up mode, but we can stop the use of diesel power plant any time if the nickel price goes down again. However, we are optimistic that global nickel demand and price will improve in 2010, spurred by growth in China and Taiwan,? he said. He, however, declined to disclose next year?s production target.

Inco has produced 32,400 tonnes of nickel-in-matte during the first half of 2009. The company produced 72,400 tonnes of nickel-in-matte in 2008.

Arief also said Inco resume supply of 1 million tones of nickel ore per annum to feed ferro-nickel smelter of state miner PT Aneka Tambang Tbk. ?Inco has enough ore to supply Antam?s FeNi III smelter for three years,? he said. (bernard)