PT Inco to boost hydropower potential
Saturday, April 24 2004 - 04:47 AM WIB
PT Inco said it was currently making some innovations on its low-cost hydroelectric that would combine thermal and hydroelectric systems to achieve the target output.
In 2003, the company successfully added approximately 5 MW of power, which translated into production of nearly 750,000 pounds of nickel in matte.
Furthermore, the company is also studying the potential for building a third dam on the Larona River, located near the village of Karebbe to raise its hydroelectric power generating capacity by 90 MW to 365 MW.
?This enhanced capacity could support an increase in our annual production to 200 million pounds of nickel in matte by the year 2009,? the company president Bing R. Tobing said in statement recently.
Energy represented about 35 percent of PT Inco?s total cash costs in 2003, which mostly sourced from high sulphur fuel oil (HSFO).
The company earlier said access to low-cost hydroelectric power is vital to PT Inco?s cost competitiveness. ?Wherever possible, we use hydroelectric power rather than fuel oil,? the company said.
However, the company has planned to increase its fuel oil consumption to 3.4 million barrels in 2004 from 2.9 million barrels last year to take advantage of a strong nickel market price.
The company has agreed to buy the fuel product from state-owned PT Pertamina for one-year period starting July this year.
PT Inco planned to increase its production to 160 million pounds of nickel in matte this year from 154.8 million pounds last year.(robert)