PT.Inco reports increased Q2 production

Canadian nickel miner reported Tuesday that its Indonesian unit PT. Inco produced 43 million pounds of nickel in matte in the second quarter of this year, 20 percent higher compared to last year?s same period production.

PT.Inco?s first quarter nickel in matte production was 39 million pounds.

The company said finished nickel production from PT Inco matte for 2004 is forecast at between 158 and 162 million pounds.

PT.Inco, which operates huge nickel mining complex in South Sulawesi is currently exploring the potential for building a third dam to raise its hydroelectric power generating capacity by 90 megawatts to 365 megawatts. This enhanced capacity could support an increase in annual production by PT Inco to 200 million pounds of nickel-in-matte by 2009 and could also reduce PT Inco's unit cash cost of sales by an estimated US$0.10 to $0.15 a pound.

Inco limited has 61 percent stake at PT. Inco, which is listed at The Jakarta Stock Exchange. (alex)