Indonesia Inco sees lower nickel output in 2011

The fall is within expectations as the company will rebuild its facility in October to increase capacity and fix production disturbance after a February earth quake in Sorowako on Sulawesi province and lighting storms, Bernadus Irmanto, Inco corporate secretary, told reporters.

"Production may not pick up as soon as in 2012," said Irmanto. "There's an adjustment period for production to be fully operational."

Production at Inco fell 8 percent to 16,501 tonnes in the first quarter compared with the previous quarter. The firm said in May it still aimed for an annual production of 90,000 tonnes.

Inco is a unit of Brazil's Vale Inco, one of the world's top nickel producers.

Inco produces nickel in matte from lateritic ores at its integrated mining and processing facilities near Sorowako, where it has a contract agreement until 2025.

Copyright Reuters, 2011