PT Inco to complete Karebbe project in H2 2011

IDX-listed nickel miner PT International Nickel Indonesia Tbk (PT Inco) said on Thursday that the construction of its US$410 million third hydropower plant in Karebbe was in progress and expected to be completed in the first half of 2011.

All fabrication packages are progressing as planned, the firm said in a statement.

?The project will produce enough hydroelectric energy to displace all existing oil and diesel generation to feed the electric furnaces at the Sorowako facility and is the main initiative in Inco?s energy cost reduction program,? it said.

Under the loan facility provided by a group of Japanese banks, with support from Nippon Export and Investment Insurance, the company recovered a portion of the loan disbursements, by making the first drawdown of $150 million on Dec. 30, 2009.

A second drawdown is expected to happen in March 2010 and will fund the conclusion of Karebbe project.

The company plans to spend $257.7 million in capital expenditures in 2010, which consists of $112.1 million in sustaining capital, $141.3 million in growth capital, and $4.3 million for health, safety and environment programs (denny)