PT Inco says Pomalaa nickel smelter construction infeasible

IDX-listed nickel miner PT International Nickel Indonesia Tbk (Inco) said Monday feasibility study showed that its plan to build a nickel processing facility at Pomalaa in South East Sulawesi was not feasible.

?The detailed feasibility study, which was conducted by a number of experienced, independent third-party consultants has determined that this project is not economically feasible at this time based on the current conditions,? PT Inco said in statement, adding that the report had been submitted to the Ministry of Energy and Mineral Resources.

Inco is reviewing the construction of a high pressure acid leach processing facility at Pomalaa to produce nickel hydroxide, an intermediate nickel product, with an annual production capacity of approximately 30,000 metric tons, PT.Inco said in statement in Dec 02, last year.

The company said that it continued to pursue and analyze the feasibility of the proposed project and it would examine alternative development opportunities and strategies for the Pomalaa area.

Following discontinuation of ore supply to PT Antam Tbk in mid 2008, PT Inco is required to deliver a report to the Ministry by April 2009 evaluating the economic and technical feasibility of the construction of a processing facility at Pomalaa. (denny)