PT Inco to halt field activities on dam project

South Sulawesi nickel miner PT Inco has announced it would temporarily halt its field activities on a US$290 million dam project pending a final approval from the Ministry of Forestry.

PT Inco said in a statement recently that it had submitted a revised proposal on the project as required by the ministry and is waiting for an approval.

As part of efforts to support its plan to expand nickel in matte production to 200 million pounds in 2009 from 160 million pounds currently, PT Inco plans a third dam on the Larona River to raise its power generating capacity by 90 megawatts or about 33 percent of the existing combined capacity.

Ministry of Forestry has issued permit to use the 400-hectares plot, which is located outside the company’s contract of work area, to be used to construct the dam with several requirements that have forced Inco to revise their proposal.

Ministry of Energy and Mineral Resources has signed approval on the production expansion plans.

PT Inco is a 61 percent-owned subsidiary of Canada’s Inco Limited. (godang)