PT Inco nickel production increases 23% in Q3
Friday, October 24 2003 - 11:30 AM WIB
?With improved mining and blending practices, the ore grade for the quarter rose to 1.88%, well above our second half target of 1.77%,? said President and CEO Bing R. Tobing.
PT Inco also reported that production of nickel in matte in the first nine months of 2003 was 52,900 tons (116.7 million pounds), compared with 47,200 tons (104.0 million pounds) in the same period of 2002.
Meanwhile, despite its unit cash cost of production rose by 19 percent to US$1.57 in the third quarter of 2003 from $1.32 in the same quarter last year, which was due to increases in the use and price of high sulphur fuel oil (HSFO) which rose to an average $26.80 per barrel from $22.45 per barrel, PT Inco reported its unaudited net earnings rose 141 percent to $28.2 million ($0.11 per share) in the 2003 third quarter from $11.7 million ($0.05 per share) in the same quarter last year.
According to the statement, PT Inco?s realized price for nickel in matte averaged $7,037 per ton ($3.19 per pound) in the third quarter of 2003, compared to $5,461 per ton ($2.48 per pound) in the third quarter of 2002.
?We now expect to produce about 150 million pounds of nickel in matte in 2003 ? 10 million pounds better than plan. At the same time, our results continue to benefit from strong nickel prices,? Bing Tobing added.
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)