RNS Number:9606Q
Inco Ld
15 October 2003

                                                
                      INCO LIMITED PROVIDES UPDATE ON
             IMPACT OF POST-STRIKE RAMP-UP AT ONTARIO OPERATIONS
                  ON PRODUCTION AND COSTS AND NET EARNINGS
                 FOR THE THIRD QUARTER OF 2003 AND GUIDANCE
               ON PRODUCTION, COSTS AND CERTAIN OTHER FACTORS

                         ___________________________


                   WEBCAST OF CONFERENCE CALL ON THIS UPDATE
           TO BE HELD AT 5:00 P.M. (TORONTO TIME) ON OCTOBER 15, 2003

Toronto, October 15, 2003. Inco Limited announced today that a slower than
expected ramp-up of operations at its Ontario operations after a nearly
three-month strike will adversely affect its nickel unit cash cost of sales
after by-product credits and production of certain metals for the third and
fourth quarters of 2003. A strike of the unionized workforce at the Company's
Ontario operations began on June 1, 2003 and a new collective agreement ending
the strike was entered into on August 28, 2003.

"We have not had a three-month strike at Ontario in 20 years. We expected to
overcome these ramp-up problems earlier but unfortunately that was not the
case," stated Scott Hand, Chairman and Chief Executive Officer.

The Company's Ontario operations have experienced a series of unanticipated
problems principally at its smelter and related facilities which were associated
with the ramp-up of those facilities after the strike. These problems, which
have been resolved, included outages or curtailments of operations at the
Ontario operations' oxygen plants and acid plant.

These ramp-up problems have adversely affected production of nickel, copper and
platinum-group metals ("PGM") for the third quarter of 2003 beyond what the
Company had assumed in its July 22, 2003 projection for its 2003 nickel unit
cash cost of sales after by-product credits. As a result of these lower
production levels, the Company currently anticipates that its nickel unit cash
cost of sales after by-product credits for the third quarter of 2003 will be
about U.S. $2.25 to $2.30 per pound as compared with the Company's July 22, 2003
projected average nickel unit cash cost of sales after by-product credits of
U.S. $2.05 per pound for 2003.

The Company currently expects that its nickel production for 2003 will be about
410 to 415 million pounds. Higher than planned production at the Company's
Manitoba and PT International Nickel Indonesia Tbk ("PT Inco") operations is
expected to largely offset the shortfall in production at the Ontario operations
for the third and fourth quarters of 2003.

As a result of these same start-up problems, PGM production for 2003 will be
about 205,000 to 210,000 troy ounces as compared with the Company's July 22,
2003 projected three month strike-affected plan of 280,000 troy ounces and
copper production for 2003 will be about 5 to 10 million pounds below the
Company's July 22, 2003 three month strike-affected projection of 205 million
pounds. These smelter problems and the relatively long lead times to refine PGM
are expected to result in only minimal PGM production from Ontario in the fourth
quarter of 2003. The reduced production levels are expected to significantly
adversely affect fourth quarter 2003 nickel unit cash cost of sales after
by-product credits. Production of PGM lost in the fourth quarter of 2003 is
expected to be made up in 2004 and the Company currently expects that PGM
production will be about 400,000 ounces in 2004. The Company currently projects,
largely as a result of only minimal PGM production for the quarter, that these
unit cash costs for the fourth quarter 2003 will be about U.S. $2.55 to $2.65
per pound based upon currently prevailing exchange rates. The Company currently
projects that its overall nickel unit cash cost of sales after by-product
credits for 2003 will average about U.S. $2.20 to $2.25 per pound, also based
upon currently prevailing exchange rates.

The Ontario smelting and refining operations are currently operating close to
planned levels. "The Ontario smelter facilities have now been operating
extremely well and we believe that the ramp-up problems at these facilities are
behind us," indicated Peter C. Jones, President and Chief Operating Officer.

While the Ontario operations have sufficient intermediate concentrate to smelt
and refine to meet current planned production levels for these operations for
the fourth quarter of 2003, one of the Ontario operations' mines has experienced
an ore pass problem which may not be resolved until the first quarter of 2004
and could adversely affect production in 2004.

The Company continues to evaluate a range of actions to reduce costs and to
offset cost increases experienced as a result of the appreciation of the
Canadian dollar, higher energy costs and increased pension costs. The Company's
objective remains to reduce controllable costs by 10% to 15% over the next 12 to
18 months. It has reduced employment levels at its Ontario operations by some
160 positions or about 3% since the strike at those operations began in June
2003. To reach this cost reduction objective, the Company is developing and
intends to put in place new productivity programs and other actions.

The appreciation of the Canadian dollar relative to the U.S. dollar in the third
quarter of 2003 is expected to negatively affect the Company's tax accruals and
this occurrence is currently projected to reduce net earnings in accordance with
Canadian generally accepted accounting principles ("GAAP") for that quarter.

Given the recent increase in the London Metal Exchange (LME) cash nickel price
in the fourth quarter of 2003 to date and the effect that this rise has on how
the price for PT Inco's matte product is calculated and the pricing of certain
of the Company's specialty nickel products, the Company currently estimates that
its fourth quarter 2003 premiums will be in the range of U.S. $0.02 to $0.08 per
pound of nickel, as compared with the Company's July 22, 2003 projected range
for premiums of U.S. $0.12 to $0.18 per pound for that quarter.

Reduced production levels and the resulting increase in nickel unit cash cost of
sales after by-product credits for the third quarter of 2003, together with the
effect on tax accruals referred to above will reduce the Company's third quarter
2003 net earnings in accordance with Canadian GAAP by about U.S. $0.10 to $0.15
per share.

The Company expects to be in a position to discuss the specific impact that
these reduced production levels, unit cost increases and adjustments in tax
accruals will have on its third quarter 2003 financial results and fourth
quarter 2003 projected financial results on October 21, 2003 when it reports its
third quarter 2003 financial and operating results and holds its conference call
on that date to review those results.

Webcast Information on Conference Call

We will webcast, on a live, listen only basis, a conference call covering this
announcement. This webcast will be made available through a separate third party
webcasting service, Canada NewsWire Ltd. The conference call is expected to
begin at 5:00 p.m. (Toronto time) today.

Any person having a computer and Internet access who is interested in listening
to the conference call can access this webcast by visiting Canada NewsWire's
website, www.newswire.ca/webcast. For any questions on whether your computer
system meets the minimum requirements to listen to this call or if any person
listening experiences any problems, Canada NewsWire provides a "Webcast Help"
page which can be accessed at their website, www.newswire.ca/webcast. Canada
NewsWire's helpdesk is also available to answer any questions or to assist with
any problems and can be reached at webcast@newswire.ca.

Copies of any slides for the conference call can be accessed and will be
available for online viewing by persons with a computer and Internet connection
through www.newswire.ca/webcast by clicking on the event title or listen link or
through Inco's website, www.inco.com, by clicking on the "Latest Presentation"
link on the homepage and then referencing the heading "October 15, 2003
Conference Call".

It is currently expected that the scheduled speakers for the Company on the
conference call will be Scott Hand and Peter Jones. The conference call may, but
not necessarily will, include forward-looking statements.

The archival webcast of the conference call will be available through
www.newswire.ca/webcast beginning one hour after the end of the call. Canada
NewsWire makes such archivals available for a period of 90 days. To access the
archival webcast through your computer, please use www.newswire.ca/webcast.
Computer systems must also meet certain minimum requirements in order to access
the archival webcast. A recording of the conference call will also be available
in North America through 5:00 p.m. (Toronto time) on October 29, 2003 and can be
listened to in North America by dialing 1-800-558-5253 (if calling from outside
North America, please dial (416) 626-4100), and entering the reservation number
21163505.

This news release contains forward-looking statements regarding the Company and
its financial position, production of nickel, copper and platinum-group metals,
unit cash costs, premiums and tax accruals. Actual results and developments may
differ materially from those contemplated by these statements depending on,
among others, such key factors as business and economic conditions in the
principal markets for the Company's products, the supply and demand for nickel,
the Canadian-U.S. dollar exchange rate and the impact of changes in that rate on
tax accruals, nickel inventory levels and production costs, production levels
and the timing and development of, and capital costs and financing and other
arrangements associated with, its Goro and Voisey's Bay projects. The
forward-looking statements included in this release represent the Company's
views as of the date of this release. While the Company anticipates that
subsequent events and developments may cause the Company's views to change, the
Company specifically disclaims any obligation to update these forward-looking
statements. These forward-looking statements should not be relied upon as
representing the Company's views as of any date subsequent to the date of this
release.

                                     - 30 -

IN 03/36

October 15, 2003

For further information:

Investor Relations:          Sandra Scott    (416) 361-7758
Media Relations:            Steve Mitchell   (416) 361-7950


or www.inco.com



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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