NICKEL PLANT – Inco looks to China

LIAONING PROVINCE, CHINA - Toronto's INCO LTD. plans to build a new Utility nickel plant in the city of Dalian. The new plant will supply the needs of stainless steel makers in the fast-growing Chinese market.

The plant will cost US$63 million and start-up is expected in the first half of 2008. It will have a nominal capacity of 32,000 tonnes/year. Feed for the plant will come from the Goro nickel mine in New Caledonia and other sources.

Engineering and construction contracts have been awarded to POSCO E&C (BEIJING). Technology and support will also be supplied by KOREA NICKEL CORP.

The new Dalian plant will be built, owned and operated by INCO NEW NICKEL MATERIALS (DALIAN), a Sino-foreign joint venture company in which Inco indirectly holds a 97% equity interest. The facility will be Inco's fifth processing plant in China. Inco currently operates a nickel shearing and packaging facility in Dalian, and together with joint venture partners, a nickel salts refinery near Shanghai and nickel foam plants in Dalian and in Shenyang.

Inco maintains a separate website for its special products division at www.IncoSP.com.