PT Inco to conclude final FS on C. Sulawesi new smelter

Indonesia-listed nickel miner PT International Nickel Indonesia Tbk (PT Inco) announced Wednesday that it has recently signed two separate memorandums of understanding (MoU) with Chinese steel companies Baosteel Resources Co. Ltd. and PT Pan China International (PCI) to conclude final feasibility studies to build a new nickel processing facilities in Morowali regency, Central Sulawesi.

The company has also approved the construction of a road from the Bahodopi ore deposit in Morowali regency to the region of Sorowako in East Luwu regency as well as preparing for the construction of a dryer and screening station in Bahodopi. These projects will be implemented in the short term subject to certain government approvals, the company said.

Meanwhile, the company also said that together with the assistance of the regional government, it is looking at options to engage in partnership with a third party to develop nickel deposits in the Pomalaa region.

In Dec 2008, Inco held public consultations in Pomalaa, Southeast Sulawesi and Bahodopi in Central Sulawesi as part of the initial stage in preparing its environmental impact studies to build processing facilities in the areas.

The company is studying the option of building a plant facility at Bahodopi, with a capacity of approximately 30,000 tonnes per year to process the nickel hydroxide from Pomalaa.

In May 2009, Inco announced that feasibility study showed that its plan to build a nickel processing facility at Pomalaa in South East Sulawesi was not feasible. (denny)