Inco Commence Producing Nickel Concentrate at Voisey Bay

Inco Limited announces that it has achieved a major milestone at its Voisey’s Bay project in Labrador, Canada, with the successful production of first concentrate. The Voisey’s Bay concentrate represents the first production from Inco’s growth projects.

“We’re off and running,” said Inco Chairman and Chief Executive Officer Scott Hand. “Our plan to be the world’s leading nickel company is becoming reality.” With Inco’s Voisey’s Bay project, its Goro nickel-cobalt project now under construction in New Caledonia, and an expansion to its existing PT Inco operations in Indonesia, the company plans by 2009 to increase its nickel production by some 35 per cent from its record 2004 production.

Inco remains on target to see the first shipment of concentrate from the Voisey’s Bay project in November 2005, well ahead of the original project schedule.

“Nickel concentrate from Voisey’s Bay will dramatically decrease our need for external feed and will have a very positive impact on Inco’s cash flow and overall costs of producing nickel,” said Peter Jones, Inco President and Chief Operating Officer.

Production at Voisey’s Bay will ramp up over the coming months. Production from Voisey’s Bay in 2006 is currently expected to be approximately 110 million pounds of nickel in concentrate. The project will also produce cobalt and copper, including copper in concentrate.

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