PT Inco still on track to achieve output target

Publicly listed nickel miner PT International Nickel Indonesia on track to produce 160 million pounds of nickel in matte this year as a drop in water supply to its hydropower plants hasn't disrupted nickel processing, the Dow Jones Newswire cited an official with the company as saying on Wednesday.

Inco's spokesman, Rajeshanagara Sutedja, said a dry spell in the Sulawesi provinces, where the company's mining site is located, has reduced water availability to the hydropower plants below normal levels.

"The drop in the water supply is not significant, so it hasn't disrupted our operation," Rajeshanagara said.

The company has a nickel mining license that covers 218,000 hectares in South Sulawesi, Southeast Sulawesi and Central Sulawesi.

Rajeshanagara added that the company is also optimistic that this year's output target is achievable due to better-than-expected production in the first nine months of the year.

Inco produced 121.6 million pounds of nickel in matte in the first nine months of this year, compared with 116.7 million pounds of nickel in matte in the same period last year, according to a company report for the first nine months.

However, the company may have to turn to cloud seeding early next year if the dry spell continues, he said.

Inco operates two hydropower plants with a combined capacity of 275 megawatts for nickel processing. It is in the process of building another hydropower plant with a capacity of about 90 MW to boost its output to 200 million pounds nickel in matte in 2009. (*)