Indonesia is considering plans to construct a US$150M dam on the Larona river as part of a programme that will increase energy security for a local metal producer.

PT International Nickel Indonesia, a unit of Canadian nickel producer Inco, already generates electricity from two hydro power plants, which together total 275MW in capacity. It wants to build an additional 90MW hydroelectric dam near the village of Karebbe to help increase the amount of nickel it produces as well as reduce energy shortages.

The application has been submitted to the Indonesian government’s Department of Energy and Mineral Resources.