Inco puts Indonesian concerns behind it

Nickel giant Inco (TSE) reports that third-quarter nickel production was 12 million lb. less than it had expected, amounting to only 80 million lb.

While production is generally lowest in the third quarter (owing to scheduled vacation and maintenance shutdowns), it was especially low this year as a result of startup and equipment problems at Inco’s 58%-owned subsidiary, P.T. International Nickel Indonesia. The lower level of production also forced nickel unit production costs to rise.

The problems have been rectified, however, and Inco anticipates fourth-quarter production will be 111 million lb., the highest quarterly level in 1995.

Inco intends to maximize its nickel production because of the expected strong

demand for the metal. World demand for nickel in 1995 is expected to rise by 17% over the previous year, reaching 2 billion lb. As a result, supply will be outpaced by 200 million lb.

Output for the first nine months of 1995 was 289 million lb.; for the full year, it is expected to approach 400 million lb. This is significantly higher than the 345 million lb. produced in 1994.