PT Inco increases nickel matte output by 17% in Q2 2003

South Sulawesi-based nickel miner PT International Nickel Indonesia Tbk reported Thursday its nickel in matte output in the second quarter of 2003 rose by 16.9 percent to 18,900 tonnes (41.6 million pounds) from 15,700 tonnes (34.6 million pounds) in the corresponding period of 2002.

Production of nickel in matte in the first half of 2003 was 33,400 tonnes (73.6 million pounds), up from 31,400 tonnes (69.2 million pounds) in the prior year period.

?PT Inco?s strong second quarter performance demonstrates our success in improving nickel ore grades and maximizing the throughput of our processing plant, which now is operating consistently at its design capacity of 150 million pounds of nickel per annum. In fact, we achieved the highest quarterly production rate in our history,? said Edward W. Hodkin, President and Chief Executive Officer in a statement.

The company also reported a 95 percent increase in unaudited net earnings to $21.8 million in the second quarter of 2003 ($0.09 per share) from $11.2 million ($0.04 per share) in the same quarter last year.

PT Inco operates nickel mines in Soroako, South Sulawesi. The company is owned by Canadian nickel miner Inco Limited (58.73 percent), Sumitomo Metal Mining Co., Ltd. of Japan (20.09 percent) and the public (21.18 percent). (robert)