PT Inco reports Q1 production increase

JSX-listed nickel miner PT Inco produced 39 million pounds of nickel-in-matted in the first quarter of 2004, or about 20 percent higher than previous year’s corresponding period production of 32 million pounds, parent company Canadian nickel miner Inco Limited (Inco) announced on Tuesday.

Inco said that first quarter production was in line with its earlier guidance.

Inco said by the end of 2004 PT Inco would generate an additional 10 megawatts of power at its mining complex, which should further boost its production.

“PT Inco is currently exploring the potential for building a third dam to raise PT Inco's 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'sunit cash cost of sales by an estimated US$0.10 to $0.15 a pound,” said Inco.

Inco had also increased its ownership in PT Inco by 2 percent to around 61 percent furing the quarter. “During the first quarter of 2004, we used cash of US$28 million to acquire an additional two per cent of the issued and outstanding shares of PT Inco from a shareholder, increasing our ownership of PT Inco to approximately 61 per cent.”

PT Inco operates nickel mine in Southern part of Sulawesi Island. (alex)