COPY OF FINAL PROSPECTUS - Mirabela Nickel

THE NICKEL MARKET
The following summary is based in its entirety upon the Base Metals Market Briefing Report dated March 7,
2007 by GFMS Metals Consulting. All opinions, expectations and estimates contained in the following summary
are solely those of GFMS Metals Consulting. Although the Company believes that this report is reliable, the
accuracy and completeness of such information has not been independently verified. See also ‘‘Forward-Looking
Statements’’ and ‘‘Risk Factors’’.
Nickel is mostly used for the production of stainless steel, the demand for which depends largely on the
global economy. Nickel is mined from sulphide and laterite ores. The world’s main sulphide deposits are located
in Australia, Canada, Russia and Southern Africa and laterite deposits are located principally in Western
Australia, New Caledonia, Indonesia, Colombia, Cuba, Venezuela, Brazil and the Dominican Republic.
Supply and Demand
Despite record levels of production in 2006, world consumption of primary nickel grew by approximately
7.1% to 1,373,000 tonnes with growth concentrated in China. Chinese imports of nickel are rising sharply and
this trend is expected to continue given the large increase in stainless steel melting capacity that is underway
in China.
WORLD PRIMARY NICKEL CONSUMPTION
2004 2005 2006 2007 (2)
(000s)
Total Africa ................................. 44 50 51 51
China ..................................... 160 190 220 245
India ..................................... 27 28 31 33
Japan ..................................... 192 180 185 185
South Korea ................................ 103 105 110 112
Taiwan .................................... 86 90 95 95
Other Asia ................................. 12 13 8 20
Total Asia .................................. 581 606 649 690
Belgium ................................... 42 43 44 44
Finland .................................... 60 57 60 60
Germany ................................... 100 96 103 105
Italy ...................................... 62 63 66 63
Spain ..................................... 45 46 51 52
Other Europe ................................ 156 149 162 164
Total Europe ................................ 423 411 442 444
USA ..................................... 128 120 130 128
Other Americas .............................. 36 37 39 41
Total Americas ............................... 164 157 169 169
Global Total (1) ............................... 1,262 1,282 1,373 1,421
Notes
(1) Including Oceania
(2) Estimate
Source: World Bureau of Metal Statistics, INSG & GFMS Metals Consulting
As Inco Limited’s Voisey’s Bay nickel mine moves towards production capacity, it is anticipated that the
nickel market will be required to absorb higher production.
Assuming no surprise supply disruptions, GFMS Metals Consulting forecasts a 6% growth in production in
2007. Despite this increased production, GFMS Metals Consulting predicts a deficit in the supply of nickel of
approximately 10,000 tonnes in 2007 followed by a modest surplus in 2008.
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