RNS Number:8227S
Inco Ld
03 December 2003



                     ENGINEERING JOINT VENTURE SELECTED FOR

                        PHASE TWO OF GORO PROJECT REVIEW



Toronto, December 2, 2003--Inco Limited announced today that a 50-50 joint
venture between the Foster Wheeler and SNC-Lavalin organizations, to be known as
C.E.G Joint Venture, has been selected to carry out engineering, planning and
related services as part of Phase Two of a comprehensive review of the Goro
nickel-cobalt project in New Caledonia.


Definitive agreements for the estimated US $39.5 million contract covering the
services to be provided by this joint venture are still being finalized,
including the provision of performance bonds to meet certain of the joint
venture partners' obligations to the project company, Goro Nickel S.A.


In December 2002, given information that indicated an unacceptable increase in
the capital cost estimate of the Goro  project, Inco initiated a comprehensive
project review to identify actions required to have an economically feasible
project. In August 2003, the company reported that it had made encouraging
progress identifying opportunities to reduce the capital cost estimate, and was
moving to Phase Two of the project review.


Phase Two involves a structured process to further develop the opportunities for
capital cost reduction identified in Phase One of the review, as well as
establishing a project cost control estimate, an updated schedule and an
optimised and clearly defined scope and execution plan for the project. Phase
Two will also include a value improvement program and more detailed engineering.


                                    - more -





"We believe this joint venture will provide an exceptionally strong team as part
of Phase Two given the experience both firms have managing and building large
industrial projects around the world, and for their complementary strengths
covering all aspects of the project," said Pierre Alla, President Director
General of Goro Nickel S.A.


                                      -30-


IN 03/39

December 2, 2003


For further information:

Investor Relations:            Sandra Scott (416) 361-7758

Media Relations:            Alan Stubbs (416) 361-7669

or: www.inco.com







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

END
JVEFSSFLDSDSEIE