INCO to team up with Chinese firm to build smelting plant
Saturday, August 13 2011 - 03:09 AM WIB
INCO's President Director Tony Wenas said in Jakarta on Friday that there was a possibility that INCO and a Chinese company would establish a joint venture to build and operate the smelter. He, however, refused to unveil the name of the Chinese firm, saying that he could not disclose the name because the discussion on the cooperation was still at an early stage.
Tony said that INCO had planned to build a smelting plant since several years ago but a financial study which was made in 2008 indicated that the project which would cost about US$1 billion was not feasible considering the nickel prices. Tony said that the provincial administration had later proposed to cooperate with a Chinese company in the project. ?The Chinese firm has a different technology which is cheaper.? He added. ?Now the talks with the Chinese company are progressing well,? he added.
INCO plans to increase its ferronickel production to 120,000 tons in the next five years to meet the surge in the nickel demand in the world. In 2015, the production is expected to increase to 90,000 tons from about 71,000 tons at the end of 2011.
Wenas also said he was optimistic that the company?s financial results would improve this year with the completion of the hydro power plant in Karebbe. The fundamentals are strong but the nickel prices are uncertain, he added.
The nickel price at the London Metal Exchange (LME) reached US$21,600 per ton. The price fell to US$20,944 per ton early this year, the lowest level recorded this year. (*)