Inco set to operate its new power plant in 2009
Tuesday, July 25 2006 - 02:28 AM WIB
Inco's president director Arif Siregar said in the company's Sorowako mine in East Luwu regency, South Sulawesi that the nickel mining company would replace the area used for the dam and hydropower plant in the Karebe forest conservation area with about 390 hectares of forest areas in other locations.
He said that the construction of the dam and the hydropower plant would be soon commenced after the government cleared the problem related to the extension of the licenses for the land use in the protected forest.
"We hope the new power plant will be able to begin operation in 2009," he was quoted as saying.
Under the regulation issued by the ministry of forestry, part of protected forest area can be used for commercial purposes as long as the user replaces the area twice the size of the land it used. The license could be extended for every five years.
Arif said that the short-term license for the use of the area for the dam and the power plant would not pose a problem because the government had guaranteed that it would extend the permit for every five years until its contract of works (mining contract) ended in 2025.
The company earlier asked the government to provide a 30-year license for the dam and power plant project as the five-year time would be too short for such a project which would cost about US$175 million to build.
Arif said that the construction of the hydro power plant was needed to support the company's plan to increase its nickel production to 200 million pounds in 2009. The company expects to produce about 159 million tons of nickel-in-matte this year.
Beside in Sorowako, Inco operates nickel mines in other two locations in Bahudopi, Central Sulawesi and Pomalaa, Southeast Sulawesi, and has two hydropower plants at present ? the Larona hydropower plant with a capacity of 165 MW and the Balambano hydropower plant with a capacity of 110 MW. (*)