PT. Inco sees completion of hydropower project delayed

JSX-listed PT International Nickel Indonesia (PT Inco) said Monday that schedule for completion of the proposed 90 MW Karebbe hydro power plant project will be delayed one year to the first quarter of 2010 due to a delay in finalizing amendments to a forestry permit.

PT Inco is proposing a 30-year license for the dam and power plant project to the government to provide thought that a five-year time granted previously would be too short for such a project.

The construction of the hydro power plant was needed to support the company?s plan to increase annual nickel output to 200 million pounds in 2009 or about 20 percent above 2005 production levels.

Capital cost of the project will exceed previous estimate of $275-to-$280 million, said the company said, without giving latest estimate figure.

Beside in Sorowako, PT Inco operates nickel mines in other two locations in Bahudopi, Central Sulawesi and Pomalaa, Southeast Sulawesi.

The company currently has two hydropower plants? the Larona hydropower plant with a capacity of 165 MW and the Balambano hydropower plant with a capacity of 110 MW. (denny)