PT. Inco?s nickel production jumps in 2004

Canadian nickel miner Inco Limited (Inco) said on Tuesday that nickel production of its Indonesian unit PT. Inco increased significantly to 165 million pounds in 2004 from 145 million pounds a year earlier.

The company, however, said that PT. Inco?s 2005 production was expected to come down slightly to between 160-162 million pounds due to lower water level as result of reduced rainfall its hydroelectric power that that supplied electricity to PT. Inco?s smelter. PT. Inco?s production level is expected to get back to 2004 level in 2006, ramping up to 200 million pounds per annum in 2009, when its third dam construction, which will add electricity capacity by 90 MW, would be completed.

Inco also said its Indonesian subsidiary would commence sending state nickel miner Pt. Aneka Tambang about one million tonnes of saprolitic nickel ore per year from Pomalaa East for smelting in June 2005.

Elsewhere, Inco chairman was quoted by agencies that the company was keen to increase its stake in PT Inco from 61 percent currently.

"I suspect that if we had the opportunity to buy more, we would," Scott Hand, Inco's chairman and chief executive said on a conference call in response to a question.

Hand added that a certain minimum amount of PT Inco's stock needed to remain in public hands for the firm to keep its listing on the Jakarta Stock Exchange. (alex)