PT International Nickel Indonesia, the nation's largest nickel miner, said its furnace will restart operations by month's end, or 30 days behind scheduled, after being damaged by fire.

The May 23 accident caused the miner $3 million (U.S.) in losses and output may fall by up to 5.4 per cent to 158 million pounds, Arif S. Siregar, president director, said. The company had a production target 167 million pounds this year.

The furnace was scheduled to resume operations by the end of July. The miner operates four furnaces at its Sorowako mine in South Sulawesi.

Nickel is used to make stainless steel.