Inco threatens to file lawsuit against govt with int'l arbitration

Publicly listed mining company PT International Nickel Indonesia Tbk (Inco Tbk) has threatened the government that it would go to an international arbitration if it were not allowed to resume its mining project in Sulawesi, Bisnis Indonesia reported on Friday.

?We'll go to the international arbitration, if our mining project is not included in the list of 13 mining projects to be allowed to resume operation,? Inco?s president Bing R. Tobing said in Jakarta on Thursday. ?Settling a dispute at an international arbitration is allowed under the existing contract of work,? he added.

The government has recently agreed to allow 13 mining companies to resume their operation in protected forests after being banned for years.

The 13 firms are part of dozens of mining companies whose mining projects have been stopped following the issuance of new forestry law in 2000, which prohibits mining activities in forest conservation areas.

Tobing said that local legislators had visited the mining area and were satisfied with the company?s community development program. In 2003, Inco spent about US$1.5 million to finance its community development projects.

He added that Inco planned to increase nickel production to 160 million pounds this year from 155 million pounds in 2003 to take the advantage from the increase in the nickel price in the international market. (*).