PT Inco announces 2010 final dividend
To boost Sorowako nickel output
Wednesday, April 13 2011 - 07:24 AM WIB
Indonesian shareholders will be paid the Rupiah equivalent of the U.S. dollar amount, based on the Bank of Indonesia middle rate of exchange on May 5, 2011. Foreign shareholders will be paid in U.S. dollars. An interim dividend for 2010 of US$0.02 per share was previously paid in October 2010, bringing the aggregate dividend for 2010 to US$0.0346 per share, the company said in statement.
The company also outlined specific initiatives and plans to support growth in production from an annual production average of 73,000 tonnes in the last five years to 90,000 tonnes and possibly beyond this level over the next few years, it said.
This represents one of the most ambitious growth plans the company has contemplated, with positive implications for all three provinces of Sulawesi in the company?s contract of work area and the communities where it operates.
For the Sorowako operations in South Sulawesi, it was approved by the Board of Commissioners to increase annual capacity to 90,000 tonnes through brownfield expansions. One pillar of this expansion is the Production Optimization Plan (POP) in the Sorowako processing facilities ? including a furnace upgrade slated to begin in late 2011.
Another important part of this expansion program is based on an optimization of the nickel ore mining method. The company is undertaking a new and aggressive exploration and exploitation program called CEPAT (Cara Eksplorasi dan Penambangan Agresif Terbaik) that will see mining activity in several areas simultaneously instead of the traditionally sequential mining approach.
This program will create positive impacts for several communities in all three provinces in the company?s contract of work area by opening up new mines with ore being processed at the company?s Sorowako facilities, it said.
The project is in the advanced stages with implementation to start in 2011 subject to certain government approvals. The company also provided an update on its Karebbe Hydropower dam project, confirming it expects the project to be finished and delivering first power as early as August 2011. This project, which will generate 90MW, will provide the necessary energy to enable the production expansion goal of 90,000 tonnes and will reduce costs by replacing higher-cost thermal power.
The company is also studying initiatives on the feasibility of constructing an additional processing line at its Sorowako facilities that could enable the company to go beyond the 90,000 tonnes production goal.
Supporting this potential, Inco is undertaking hydroelectric power related studies aimed at identifying additional power-generating opportunities in Sulawesi to support such potential growth plans. (denny)