Indonesias Inco H1 nickel output down 8 pct yr/yr

Indonesias Inco H1 nickel output down 8 pct yr/yr

The Indonesian unit of Canadian nickel producer Inco Ltd. said on Thursday its nickel matte output fell 8 percent in the first half to 73.3 million pounds or 33,300 tonnes compared with the same period last year.

Nickel matte is an intermediary product from a smelter that must be further refined to make pure metal.

PT International Nickel Indonesia Tbk has said its nickel matte output is expected to fall to between 159-160 million pounds this year due to a fire at one of its furnaces in late May.

It had initially targeted a 2006 output of 167 million pounds.

Inco Indonesia said in a statement deliveries of the anti-corrosive metal used in stainless steel fell to 74.7 million pounds or 33,900 tonnes from 77. 2 million in the same period last year. The nickel produced is sold mainly to Japan.

The average price of nickel received by the company in the first half was up 4.7 percent to $12,811 a tonne from previous year.

The nickel miner said its net profit in the first half fell 17 percent to $123.281 million from $148.695 million while revenue rose 1.4 percent to $440.5 million compared with $434.3 million a year ago.


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