PT Inco reports higher 2007 nickel output, proposes HPAL facility at Sorowako

IDX-listed South Sulawesi nickel miner PT International Nickel Indonesia Tbk (Inco) reported Monday that its 2007 production of nickel-in- matte was 169 million pounds (76.657 tonnes), exceeding the original target of 165 million pounds.

The company produced 157.9 million pounds of nickel-in-matte in 2006.

The company also reported that senior management had met with government to discuss the company?s obligations under its Contract of Work (CoW). PT Inco presented plans to allow it to commence mining operations at Bahodopi and to construct a high pressure acid leach (HPAL) processing facility at Sorowako in substitution for the its obligation in the CoW to construct a processing facility at Bahodopi.

If all plans are approved by the government and the company, it is expected that the proposed processing facility in Sorowako will produce approximately 48.5 million pounds or 22,000 tonnes of nickel annually, it said. Under this plan, the ore from Bahodopi would be combined with ore from the Sorowako area to feed the existing pyrometallurgical processing facility in Sorowako. (denny)