PT INCO says ferronickel plant development in Bahodopi block not feasible

IDX-listed South Sulawesi nickel miner PT. International Nickel Indonesia (PT.Inco) reported on Monday that assessment by an independent consultant showed development of a stand-alone ferronickel processing facility to develop its Bahodopi deposit is not economically feasible and therefore the company wanted to get government approval to change the block?s exploitation plan.

The company said in release it would propose to the government to alter its obligation to construct a processing facility at Bahodopi which will allow it to start mining operations at the and to construct a high pressure acid leach (HPAL) processing facility at Sorowako. Under the company?s proposal, ore from Bahodopi would be combined with ore from the Sorowako area to feed both the existing pyrometallurgical processing facility in Sorowako and the proposed HPAL processing facility.

?To carry out these proposals, the company will need to proceed with feasibility studies on the proposed high pressure acid leach processing facility to be located in Sorowako. It will also need to conclude agreements with the Government of the Republic of Indonesia and secure necessary permits to support a significant capital investment,? the company said.(alex)