Rio Tinto: No intention to pull out of Sulawesi nickel project

Indonesian unit of Anglo-Australian mining giant Rio Tinto said on Wednesday it would continue with its Lasamphala nickel project in Sulawesi despite move by its rival BHP Billiton to pull out of Indonesia.

?Rio Tinto has no intention to scrap the project. We are currently working to get permits for the project,? Budi Irianto, Rio Tinto Indonesia spokesperson told Petromindo.Com.

BHP on Tuesday announced decision to scrap its giant coking coal project in Central and East Kalimantan and may move to sell the concession. Last year, the company also decided to terminate its nickel project in Gag island, West Papua.

Rio Tinto said earlier it planned to invest up to US$2 billion to develop the Sulawesi nickel mine.

Nickel price had been gone down sharply since last year due to global economic slowdown, which had substantially cut demand for nickel. (bernard)