Inco to conduct metallurgy test at Bahudopi mine next year

PT International Nickel Indonesia Tbk (Inco) will carry out a metallurgy test at the Bahudopi mine next year as a continuation of the company's exploration activities in the new mining site.

Inco's president director Bing Tobing said in Jakarta on Thursday that the metallurgy test would be carried out to determine the grade of the nickel ores found in the new mining site.

"Exploration activities are underway. We hope we will be able to carry out a metallurgy test next year to find out the type of the nickel ores in the mining site," he was quoted as saying. But he said that based on an initial test, the nickel deposits in the new mine site which is estimated to be able to produce 50,000 tons of nickel ores a year, mostly comprises of ferronickel.

He also said that since early July , Inco already delivered the nickel ores to Antam's stockpile to be used in operating the FeNi III smelter in first quarter next year.

Meanwhile Inco's director J.K. Van Gaalen, said that the company had not decided the financial sources for the company's expansion plan which is expected to increase production by 25 percent in 2009. (dino)