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PT Inco to resume construction of Indonesia's 90-MW Karebbe

PT International Nickel Indonesia Tbk. (PT Inco) will resume construction of the 90-MW Karebbe hydroelectric project, suspended more than a year ago, following the issuance of a forestry permit.

Construction of Karebbe on Sulawesi Island was suspended in January 2006, pending permits from the Forestry Ministry.

"The Board of Commissioners of PT Inco has approved the resumption of construction at the hydroelectric Karebbe project following the issuance of a forestry permit in late August," PT Inco said October 1.

Karebbe Dam, which is to cost US$180 million, is expected to help boost production to about 200 million pounds of nickel per year. In March, PT Inco said it expects to invest US$36 million in 2007 on Karebbe, on the Larona River in South Sulawesi Province. (HNN 4/2/07)

"We expect to start construction in the fourth quarter of this year," Inco spokesman Rajeshnagara Sutedja said, adding the project is expected to be completed by 2010.

PT Inco, owned by Brazil's Companhia Vale do Rio Doce through Canada's Inco Ltd., aims to produce between 160 million and 165 million pounds of nickel in matte this year.

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