Release: PT Inco: BOC approves resumption of hydroelectric generating project

(JAKARTA, October 1, 2007) -- PT International Nickel Indonesia Tbk (PT Inco) today announced that the Board of Commissioners of PT Inco has approved the resumption of construction at the hydroelectric Karebbe project following the issuance of a forestry permit to PT Inco by the Minister of Forestry of the Republic of Indonesia in late August 2007.

The Karebbe dam and hydroelectric generating facility are expected to raise PT Inco’s generating capacity to support annual production of 200 million pounds of nickel in matte and are expected to provide another 90 megawatts per year of hydropower.

Groundwork at Karebbe, the Company’s major capital project, has been suspended since early January 2006, pending the finalization of the terms of the forestry permit. The Board of Commissioners approval enables the Company to resume work on the project.

PT Inco is one of the world’s premier producers of nickel. It produces nickel in matte, an intermediate product, at its integrated mining and processing facilities near Sorowako on the Island of Sulawesi. The Company, which is traded on the Jakarta Stock Exchange, is majority-owned by CVRD Inco Limited of Canada. CVRD Inco Limited is wholly-owned by Companhia Vale do Rio Doce of Brazil. (end of release)