28 May 2004

Inco's New Caledonia project still likely but delayed

2:15 pm on 28 May 2004

Canadian nickel mining giant Inco has announced it may resume its Goro project in New Caledonia's South before the end of the year.

Inco owns 85 per cent of the Goro nickel-cobalt project.

The project was paused in November 2002, due to unforeseen over-expenditure in capital costs, but also to ongoing tensions with local indigenous groups.

Since then, the construction site in Goro had remained idle.

The chairman Scott Hand as saying the current cost review of the Goro project was underway.

The cost of the project would be reduced to some 1.85 billion US dollars, some 500 million US dollars less than the initial project due to savings on concrete, structural steel, piping and electrical requirements.