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T International Nickel Indonesia Tbk (Inco) is aiming to increase the annual capacity of its nickel production in Sulawesi by more than 20 percent in coming years, even though it has relinquished 12.5 percent of its concessions, its top executive said.

President director Tony Wenas said Wednesday that in order to achieve its target, the company would carry out aggressive exploration and exploitation programs, called CEPAT, in which mining activities in different locations would be carried out simultaneously instead of using traditional sequential mining.

“Inco will invest US$232 million to raise its annual production to 90,000 metric tons in 2014 or 2015 from an average of 73,000 metric tons in the last five years,” he said at a press briefing held at the company’s annual shareholders meeting.

He said the relinquishment of 28,000 hectares of its concession areas would not affect the company’s future productivity. Its concession areas span Central Sulawesi to South and Southeast Sulawesi.

According to Decree No. 483.K/30/DJB/2010 from the energy and mineral resources minister dated
Oct. 20, 2010, Inco relinquished several blocks within its Malupulu, Torobulu, Lasalo and Paopao concessions that are all in Southeast Sulawesi.

Wenas said that aggressive exploration and exploitation programs would be effective for the improvement of the company’s productivity because under the program the company would mine simultaneously in several areas.

The company currently mines in one designated area after another under a sequential mining approach.

“We will start the expansion in 2011 as soon as the government approves our plan,” Wenas said.

He added that the expected completion of a 90-megawatt hydropower plant in Karebbe, South Sulawesi, in August would also support the expansion of the company’s production capacity. The plant would replace a higher-cost geothermal power generator, thereby reducing the company’s production costs.

During its annual meeting, Inco announced that the company would pay a final 2010 dividend of $0.0146 per share on May 20, 2011, to shareholders of record as of May 5, 2011.

“Indonesians shareholders will be paid in rupiah and foreign shareholders in US dollars,” Wenas said.

The final dividend would bring the company’s dividends for 2010 to $0.346 per share because it distributed an interim dividend of $0.02 per share in October 2010.

Inco booked a net profit of US$437.4 million last year, a rise of 157 percent from $170.41 million in 2009.

The company said that the improved figure was mainly driven by higher than average realized selling prices and greater sapes volume due to higher production. (msa)