PT Inco likely to meet nickel target of 2006

JSX-listed PT International Nickel Indonesia Tbk. (Inco) said on Wednesday it was likely to meet this year's nickel matte output target of 158 million pounds after rain helped refill hydro-power reserves.

PT Inco said last week it may have to cut nickel matte production from Dec. 20 as dry weather had caused low reservoir levels at its hydro-electric power plant.

Arif Siregar, PT Inco's president director, said water levels were now increasing following rain over the past couple of days.

"Rains have fallen in the last two days and the water level is not coming down as much as we had predicted. So we have decided not to reduce the target," Siregar told Reuters.

PT Inco has set this year's production target at 71,000 tons or between 157 million and 158 million pounds of nickel-in-matte.

The company currently has two hydropower plants? the Larona hydropower plant with a capacity of 165 MW and the Balambano hydropower plant with a capacity of 110 MW.

Inco also plans to build another 90 MW Karebbe hydro power plant project in the first quarter of 2010.

PT Inco, which is owned by Brazil's Companhia Vale do Rio Doce through Inco Ltd. (*)