Inco to Start Operating Karebe Plant in H2 2011

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Tuesday, 25 May 2010 17:42

Written by Ferdi Hasiman

Nickel miner PT Internatinoal Nickel Indonesia Tbk (INCO) said that it expects to start operating its hydro-power plant (PLTU) Karebe in second half next year. The company expects to save fuel costs up to 50% for replacing the existing expensive fuel-based power plant with the new power plant.

The company has estimated the project to cost up to US$410 million. The company has earlier secured loan facility from a Japanese bank worth US$300 million to finance the project. Recently, the company said it has so far spent US$150 million in developing the project.

The project has been delayed several times due to failure of the company to secure approval from related ministries, including Forestry Ministry, to allow the company to use the Karebe dam.

The company is seeking to secure approval from the government to use the Karebe dam for 40-50 years. However, the forestry ministry only permitted the company to use the dam for 5 years and can be extended afterward.

In the first quarter the company produced 17,000 metric tons of nickel, or 25.4% of the company’s nickel production target of 67,000 metric tons this year. The company produces between 70,000-76,000 metric tons of nickel per annum, with Japan as main market.

On Tuesday, INCO shares plunged Rp425 or 11.7% to close at Rp3,200 in line with broader market sharp fall. Inco shares has lost 12.3% from end last year of Rp3,650, but dropped sharply by 37.9% from its peak at Rp5,150 on April 20. The shares dropped sharply in the past two days, partly due to sell-off in mining sector, triggered by freefall of Bumi Resources and Bakrie-related stocks.

» London Sumatera to Pay Dividend of Rp416.19 Billion

Theindonesiatoday.com - Plantation company PT London Sumatera Indonesia Tbk (LSIP) will pay dividend of Rp416.19 billion, or Rp61 per share, for 2010 profit, Detikfinance.com reported.

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