PT Inco delays coal-fired power plant project

IDX-listed nickel miner PT International Nickel Indonesia Tbk (Inco) has decided to put on hold its US$100 million project of coverting diesel power plant into coal-fired power plant to reduce costs amid crisis.

?Given the unfavorable immediate costs relative to the short-term benefits, PT Inco put on hold its coal conversion and coal transportation projects which were initially expected to be completed in 2010,? the company said in a statement on Thursday.

The project is located at its nickel smelter premises in Sorowako, South Sulawesi.

The project is one of Inco?s three ongoing big capital projects.

The firm said it would focus capital expenditures on two other major projects, that is the Karebbe hydropower project and the installment of electrostatic precipitators (ESP) in its reduction kilns.

The Karebbe hydropower and coal conversion projects aim to reduce electricity costs for the firm and as such improve the firm's profitability in the long run. Meanwhile, the ESP project aims to improve its environmental protection performance as it will reduce dust emissions and improve nickel recovery by processing recycled dust.

The company plans to spend $228.8 million capital expenditure in 2009. (denny)