Inco net profit doubles in 2007 on high prices

Agustina Wayansari ,  The Jakarta Post ,  Jakarta   |  Sat, 03/01/2008 12:37 PM  |  Business

The nation's biggest nickel miner PT International Nickel Indonesia (Inco) said Friday its net profit doubled last year from a year earlier on higher prices and production.

The company booked a net profit of US$1.17 billion from the previous year's $513.4 million, president director Arif Siregar said in a media statement.

Sales rose 74 percent to $2.33 billion.

"Despite an 11-day strike in November 2007, the company recorded a production of nickel in matte in 2007 of 76,748 metric tons compared to 71,622 metric tons in the previous year," Arif said, adding that 2007 production was the highest in company history.

The average selling price of nickel in matte in 2007 was $29,881 per ton compared to $18,356 the year before.

The company has allocated $212 million in capital spending for this year, it said, in the hopes of reaching production of 77,000 to 79,000 metric tons of nickel in matte.

Inco also plans to build a new dam and hydroelectric facility at its Karebbe mining site, Larona River in South Sulawesi, to increase its power generating capacity by 90 MW to 365 MW.

"We continue to work on the project and expect it to be completed by the first half of 2011," he said.

Inco's major shareholders are CVRD Inco Ltd., with a 60.8 percent stake, and Sumitomo Metal Mining Co. Ltd., with a 20.1 percent stake.

CVRD Inco changed its name to Vale Inco in November last year, after its parent company Companhia Vale do Rio Doce changed its name to Vale.

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