INCO Sets US$232 Million Capex

Indonesia Finance

Wednesday, 18 May 2011 19:47

Theindonesiatoday.com - Nickel producer PT International Nickel Indonesia (INCO) Tbk, subsidiary of Vale S.A, sets a US$232 million capital expenditure this year, mainly to finance the development of Karebbe hydropower and Bahodopi mine.

According to INCO’s presentation material, around US$97 million is allocated for Karebbe plant as growth capital. Karebbe Project is the third hydroelectric plant for INCO with capital plan of US$410 million. As of March 2011, the project has 87% completed and targeted to be onstream in the second half of 2011.

Meanwhile, the balance of US$135 million will be used as sustaining capital and a number of projects including development of mine and road at Bahodopi. In the area, INCO plans to mine saprolitic nickel ore and currently under study for facility establishment options.

INCO also plans to establish road to connect Bahodopi to Sorowako. According to INCO’s financial report, Ore from Bahodopi would be combined with ore from the Sorowako area to feed the existing pyrometallurgical processing facility in Sorowako.

Besides for Bahodopi project, the allocated fund will also be used for coal conversion and transportation, plus to re-establish Adaptive Reactor Furnace No.2.

INCO claims itself as the largest lateritic nickel operations in the world, having major projects in Sorowako, Malili, Petea, Bahodopi, and Pomalaa, all located in Southeast Sulawesi. The shareholding composition in the company includes Vale Canada Ltd (58.73%), Sumitomo Metal Mining Co. Ltd (20.09%), and Public (21.18%). (bintang@theindonesiatoday.com)

International Nickel Indonesia, INCO, Nickel producer

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