Goro Nickel to postpone production

Goro Nickel to postpone production

NOUMEA, Canada: New Caledonia's metallurgical company Goro
Nickel will begin production by end 2005 rather than by late next
year, due to a cost reappraisal, according to Scott Hand, chief
executive of Canadian group Inco.

Construction work on a unit of Goro Nickel, which is expected
to produce 54,000 tons of nickel and 5,400 tons of cobalt a year,
was halted for six months from November as the cost of operation
rose sharply from 1.4 billion euro (US$1.5 billion) to 2 billion
euro.

Hand said all aspects of the project were under review and
that the start of production would be delayed until end 2005.

He said "mistakes" had been made in the unit which had got off
too quick but added that Inco was committed to the project which
could yield 2,500 jobs.

Stoppage of work on the project has met with dismay among
business circles in the French Pacific territory, which has a six
percent share of the world nickel market. -- AFP