Inco seeks 30-year license for its Karebe dam project in Sulawesi
Friday, February 3 2006 - 02:26 AM WIB
The company's spokesman Sri Kuncoro said that the five years time given by the ministry of forestry to build and operate the dam would be too short because the construction of the dam alone would need at least three years to complete.
"This is why we are asking for at least 30 years so that we will be able to reach break even point from the project," he said.
The Canada-based mining company intends to use part of the Karebe forest to build a dam for its 90 MW power plant which will be set up by the company to support its production expansion program. The company hopes to be able to increase its nickel production by 20 percent from 160 million pounds in 2005.
Meanwhile, director for coal exploration and production at the ministry of energy and mineral resources, Mahyuddin Lubis said that Inco had agreed to increase its royalty and community development funds, if the nickel production exceeded 160 million pounds a year and if prices exceeded US$3.5 per pound.
"This year, the nickel price may exceed US$3.5 per pound. So, there will be about five million pounds of nickel from Inco which can provide a windfall profit for the government," he was quoted as saying.
He said that if Inco's production did not exceed 160 million pounds, the royalty and community development funds would be calculated in accordance with the company's contract of works. (Godang)