Inco secures tire supply to meet output target

PT International Nickel Indonesia, a unit of the world?s second biggest nickel miner Inco Ltd., said it will meet its 2006 production forecast because it has secured supplies of large trucks tires, Bloomberg reported.

Nickel production will reach the 167 million pound target this year little changed from 168 million pounds in 2005. The company said in a statement.

Inco is finalizing tire supplies for 20Q7 at present, the statement said, clarifying a previous report saying that the company might struggle to meet its 2006 target because of the shortage of large truck tires.

Global tire-makers have been constrained by a surge in raw material costs. The price of natural rubber traded in Tokyo has risen 75 percent in the past 12 months to 245 yen per kilogram. Rio Tinto Group, the world?s third-largest miner said on Feb. 3 the global shortage of truck tires may last another two years as miners compete to expand to meet rising demand.

To improve productivity, Inco Indonesia ?has improved haul road conditions and matched tire compounds with road conditions, resulting in reduced fuel consumption and longer tire life,? the statement said.

Exports by Indonesia?s miners in January almost doubled to $857.8 million, the country?s Central Statistics Bureau said on March 1, lifting export growth above a median forecast in a Bloomberg survey.(*)