Voisey’s Bay yields first nickel concentrate (September 26, 2005)

Inco (N-T, N-N) has taken its first big step toward boosting nickel production 35% by 2009, with the long-awaited first pour of nickel concentrate from the Voisey’s Bay nickel-copper-cobalt project in Labrador.

The operation is expected to ship its first batch of concentrate in November, well ahead of schedule. Production will ramp up over the next few months, with production in 2006 pegged at about 50,000 tonnes.

Over a mine life of at least 30 years, annual production is forecast at 50,000 tonnes nickel, 38,600 tonnes copper and 2,270 tonnes cobalt.

At the end of 2004, the Ovoid deposit at Voisey’s Bay contained estimated proven and probable reserves of 32 million tonnes grading 2.82% nickel, 1.54% copper and 0.14% cobalt. Another 50 million tonnes of indicated mineral resource grades 1.66% nickel, 0.78% copper and 0.09% cobalt, with a further 12 million tonnes of inferred material averaging 1.7% nickel, 0.7% copper and 0.1% cobalt.

Looking ahead, Inco expects its Goro nickel-cobalt laterite project in New Caledonia to come on stream in September 2007. Goro is home to 57 million tonnes of reserves grading 1.52% nickel and 0.12% cobalt. Production is estimated at 60,000 tonnes nickel and 4,300 to 5,000 tonnes cobalt per year.

On the Indonesian island of Sulawesi, Inco is in the midst of a 4-year, $280-million program aimed at boosting PT Inco’s annual production by 25% to around 91,000 tonnes of nickel-in-matte by 2009. The company is finalizing geotechnical studies to determine the best position on the Larona River at Karebbe for a new hydroelectric dam. Inco owns 61% of PT Inco.