The Steps Required to Meet Production Targets at PT TNCO, Indonesia: A New Innovative Business Strategy

From 1997-2000. PT INCO undertook the Fourth Line Expansion Project (FLEX) to increase annual production rates from 90-100 to 150 Mlbs Ni/year (68,000 MT Ni/yr). In 2003, PT INCO nickel production underwent a major sustainable step jump that finally exceeded the targeted rate. This paper presents the changes that led to this achievement. The focus of mining changed. Improving Ni grade was important but only if electric furnace feed met target chemistry so that on-specification slag could be produced. The intensity of diamond core drilling for exploration was dramatically upgraded, mine planning strategy was totally re- vamped and an ore chemistry quality assurance team was formed. In the processing plant, measurement systems were upgraded for better control. Teamwork between sections vastly improved. The final step jump in production occurred when the fifth hydro-electric power generator was added to the furnace grid to allow the power-starved furnaces to cruise in operation at 70+ MW. Keywords: Free cash flow, Ore Chemistry, Measure, Control, Improve