Inco to build $500 million smelter
Saturday, July 30 2011 - 03:19 AM WIB
Inco?s president director Tony Wenas said on Friday that the company would need at least US$500 million to build the smelter and its supporting facilities, which would have a capacity of 35,000 tons a year.
?The funds will be used to build infrastructure facilities such as road, port, smelter, dryer and refinery,? he said.
Inco has signed a memorandum of understanding with two foreign companies ? Baosteel Resources Cp and Pan China International ? to jointly build the smelter.
Tony said that as the initial stage for the construction of the smelter, Inco would build a screening station and an 80-km road which would cost about $100 million. In addition, after Idulfitri holiday in early September, Inco would commence the operation of a new hydropower plant to support the company?s operating activities.
?With the operation of the hydropower plant, cost of production could be cut down,? he said. He also said that realized nickel production was still below the target in the first semester of this year because of the shutdown of the company?s operation for several days due to earthquake. (*)