The company expects to increase output further to 91,000 tons in 2011 with the completion of a dam in Karebbe, Sulawesi, which will increase the company's hydroelectric power generating capacity by 90 megawatts or 33%, said Arief Siregar, Inco's president director.
Inco is still waiting for approval from the Indonesian government of its plans to build a nickel processing facility in Sorowako, South Sulawesi, with construction expected to start in 2009, said Siregar.
The facility should be completed by 2012 and is expected to have a production capacity of about 22,000 tons of nickel a year.
Assuming an average nickel price of $30,000/ton, Inco hopes to reap $2.4 billion to $2.5 billion in sales this year, said Siregar.
Last year, Inco's sales rose 74% to $2.33 billion compared with $1.34 billion in 2006.
The price of nickel on the London Metal Exchange hit a record high of above $50,000/ton in May 2007 on speculation of stronger demand.
Nickel last traded Tuesday at $29,150/ton.
Inco is 61% owned by Brazil's Companhia Vale do Rio Doce (RIO).
-By Linda Silaen and Fawziah Selamat, Dow Jones Newswires; 62 21 3983 1277; fawziah.selamat@dowjones.com
(END) Dow Jones Newswires
03-26-08 0305ET
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