Inco sells 10 per cent of Goro to New Caledonia provinces

Inco (N-T,N,L) and the three provinces of New Caledonia have signed agreements for a 10% interest in Inco’s Goro US$1.8-million nickel-cobalt project in the South Pacific.

The three provinces have formed Socit de Participation Minire du Sud Caldonien SAS (SPMSC), a company which replaces the 15% interest previously held by the French government agency, Bureau de Recherches Gologiques et Minires (BRGM).

Inco gave Goro the green light last October after shelving it for two years because of ballooning cost estimates. Revised design plans reduced the size of the operation and of estimated costs.

Inco expects to produce 55,000 tonnes of utility-grade nickel annually from the plant for the Asian steel industry. The operation is expected to be up and running by late 2007.