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Exhibit 99.1 (INCO NEWS RELEASE LOGO) INCO ANNOUNCES DECISION
TO PROCEED WITH GORO PROJECT ___________________ UPDATED CAPITAL COST ESTIMATE AND SCHEDULE
AND PROGRESS ON OTHER KEY MILESTONES
PROVIDES BASIS FOR DECISION TO PROCEED _________________ TORONTO, October 19, 2004  Inco Limited announced today that, having completed
and successfully achieved the key objectives of the second and final
phase of its Goro project review, it has decided to proceed with
the development of its Goro nickel-cobalt project in New Caledonia. We are happy to report
that all of the critical
elements we required to proceed with Goro have all come together through our review
process, giving us the confidence to make this positive decision, said Inco
Chairman and CEO Scott Hand. Our review has been
successfully completed and we have the right project going forward:
Were on our way, he noted. 1




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A key objective of the second
phase, or Phase 2, of the Goro review was to achieve a reliable and
acceptable capital cost estimate for the project. This review, which
proceeded in two phases, had begun following the decision made in
December 2002 to suspend the project. The final results of the
review have included an updated capital cost estimate of $1.878 billion (U.S.),
within a minus 5 per cent to plus 15 per cent reliability range. This estimate
includes about $40 million (U.S.) for assumed escalation in costs during the
construction phase of the project, an amount that was not in previous
capital cost estimates, and also reflects favourable currency hedging gains
realized by Inco of about $31 million (U.S.) which were also not included in
previous estimates. The principal reasons for the increase from the $1.85
billion (U.S.) estimate announced on May 25, 2004 has been higher costs for a
range of construction materials and labour required for construction and the
incorporation of a new tailings storage area as part of the project. The final results of Phase 2 of the review also included an updated estimated
cash cost per pound of nickel to be produced by the project, after by-product
credits, of $1.10 to $1.15 (U.S.) per pound, based upon a cobalt price of
$7.00 (U.S.) per pound. We believe that the Goro project
returns will achieve our goal of meeting Incos
long-term, after-tax weighted average cost of capital of 9 to
10 per cent assuming a
$3.00 per pound price for nickel and a $7.00 per pound price for cobalt, Mr.
Hand noted. Phase 2 of the project review also focused on a number of other key objectives,
including (1) a viable project implementation schedule and clear project
execution plan, (2) a prudent financing plan taking into account Incos
projected cash flow potential to fund its expected share of the capital cost of
the project, (3) an experienced and dedicated team for both the construction
and operating phases and (4) optimizing the Goro 2




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projects planned process plant design and engineering requirements while also
meeting specific objectives on project operability, maintainability, risk
mitigation and environmental protection. The final results of Phase 2 of the
review have met all of these key objectives. Consistent with the preliminary
results of Phase 2 of the review announced in May 2004, the projects process
plant footprint area has decreased by approximately 50 per cent from its
original plan, reducing the quantities of bulk materials required, enhancing the
efficiency of the planned process plant from an operational and maintenance
perspective, and reducing any potentially adverse environmental effects. The final results of Phase 2 are consistent with the key preliminary findings
of this phase we announced in May, and our confidence level is now much higher,
said Inco President and Chief Operating Officer Peter Jones. We believe that
we now have a very reliable, cost-effective and efficient configuration for our
Goro project, allowing us to develop the project in a manner consistent with
our operational and financial objectives and with the support of the government
and the provinces of New Caledonia, he added. In moving forward with Goro, the project will focus initially on engineering work, with
remobilization for construction at the Goro site expected to begin in
early 2005. Based upon the final results of Phase 2 of the review, the
project construction schedule is expected to be approximately 35 months in
length, with initial production estimated to begin in September 2007. 3




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Inco and Goro Nickel S.A.
(Goro Nickel), the project company, currently plan that, as part of the project schedule, the
Goro project would reach about 75% of its expected annual capacity of 60,000
metric tonnes of nickel within 12 months after initial production, and would be
at approximately 90% of the expected nickel capacity within two years after
initial production. The Goro projects expected cobalt capacity has been
revised to a current range of 4,300 to 5,000 metric tonnes per year to take
into account the optimized mine plan for the project as part of the
final
results of the review. Weve put together an exceptionally strong and experienced team to
manage Goro through every phase of construction and ramp-up, said Mr. Jones.
We have also formed an integrated overall team consisting of personnel from the
owner and the SNC Lavalin-Foster Wheeler organizations joint venture, CEG, to
build on the strengths and capabilities of all our personnel. As part of the objectives
Inco set for Phase 2 of the review, Inco has
over the past several months sufficiently advanced, consistent with these
objectives, certain other key milestones to be met to enable the Company to
reach its decision to proceed with the project. These milestones have
included (1) achieving sufficient progress on all key permits for the construction and
operation of the Goro project in New Caledonia and a Good Neighbour Agreement
and having reached appropriate understandings or arrangements with local labour
unions and other key stakeholders in New Caledonia to put Inco and
Goro Nickel in a position to proceed with the
project, including with respect to both the construction and eventual operating
phases, on a basis that will help to ensure a clear dispute
resolution process designed to avoid any potential labour or other
disruptions, (2) advancing the terms of the Girardin Act tax-advantaged financing to be provided by 4




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the French Government and (3) reaching a satisfactory understanding on the
acquisition by the three provinces of New Caledonia of the interest in Goro
Nickel held by the French Government agency, Bureau de Recherches Géologiques
et Minières (BRGM), as part of a required realignment of the equity ownership
in the project to also enable Sumitomo Metal Mining Co., Ltd. and Mitsui & Co.,
Ltd. to be brought into the project. Inco, the
governments of the three provinces of New Caledonia and BRGM have entered into a letter
of understanding covering the acquisition of BRGMs interest in Goro Nickel by
these three provinces. The letter of understanding also covers the rights,
once they have acquired BRGMs interest, that these three provinces would
have as a shareholder in Goro Nickel, including the right to maintain up to a
10 per cent interest in Goro Nickel once certain shareholder advances have been
capitalized, which will have the effect of reducing BRGMs
current approximately 15 per cent interest to about
10 per cent. It is currently expected that definitive agreements
covering the sale of BRGMs interest and the rights that the
three provinces of New
Caledonia will have as a shareholder in Goro Nickel will be completed
prior to the end of 2004. Inco has continued its discussions with the French Government in obtaining at least
$350 million (U.S.) in the Girardin Act tax-advantaged financing which the
French Government had earlier agreed in principle to provide to the project.
While the French Government has recently reconfirmed the availability of this
financing for the Goro project, the specific terms and conditions of
this financing still need to be agreed upon with the French Government. The current expected economic benefits to the
project of this financing would be about $120 million (U.S.). I am very pleased that a decision has been taken to proceed with the Goro
project based upon the participation of the provinces of New Caledonia as a
shareholder, said Anne Duthilleul, President of ERAP, an agency of
the French government, and the lead French 5




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government official who has been responsible for facilitating nickel
development in New Caledonia. Earlier today, the government of the South Province of New Caledonia formally
issued to Goro Nickel the principal governmental operating permit required for the project. The government of the South Province of New Caledonia fully supports the
development of Goro and we are committed to making the project a
success for New Caledonia and for Inco: This project is bringing
tremendous hope for the future of New Caledonia, said
South Province President Philippe Gomes. I have presented the
Inco and Goro Nickel Boards of
Directors with the signed Installation Classée to proceed with the project, he
stated. Projects of this scope require strong partnerships to succeed and deliver
sustainable benefits and we have succeeded in putting together strong
partnerships for Goro, said Mr. Hand. Inco has entered into a
memorandum of understanding with Sumitomo Metal Mining Co., Ltd. and Mitsui &
Co., Ltd. covering their purchase of a 21 per cent interest in Goro
Nickel. Inco and Goro Nickel currently expect that definitive
agreements with these two Japanese companies covering the terms and
conditions of this acquisition and certain other arrangements
relating to their
participation in the project, including pro rata rights to
product offtake, will be completed prior to year-end 2004. Koichi
Fukushima, president of Sumitomo Metal Mining Co., Ltd., said: Sumitomo and
Inco have enjoyed a very productive, long-term partnership covering PT Incos
nickel operations in Indonesia. Our partnership at Goro will further
strengthen our 6




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relationship and make a considerable contribution to the further development of
our nickel business. Inco and Goro Nickel have developed the framework for a Good Neighbour
Agreement, which has been endorsed by local community leaders in New Caledonia,
setting out the principles intended to build sustainable relationships with the
projects neighbouring communities. This accord is expected to encompass such
areas as education, training, local employment and business opportunities,
traditional values and social impacts, and to provide a community advisory role
in key operational areas such as the environment. Goro has a long future in New
Caledonia and were working with the local communities to ensure
that the project has a positive
impact right from the outset, said Mr. Hand. We are gratified by the support
we have received from the governments of New Caledonia and France and the local
communities of New Caledonia. In August 2004, Goro
Nickel signed a workplace accord with local unions to be
involved in the project which included a dispute resolution process designed to
avoid labour disruption during Goros construction and operations phases.
The construction phases will include significant involvement from local
contractors. Our long-term target is to have over 90 per cent of the operations
workforce from New Caledonia, said Mr. Jones. As one of the largest high grade undeveloped lateritic nickel orebodies, Goro
remains a very important part of our growth strategy in nickel and has the
clear potential to be expanded significantly beyond its initial
expected nameplate
capacity in the future, Mr. Hand noted. We intend to continue our efforts to
meet the growing needs of our customers. 7




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Access to Webcast As previously announced, interested investors can listen to our presentation on
the Goro project which will be part of our conference call covering third
quarter 2004 financial and operating results on a live, listen-only basis, or
access the archival webcast or the recording of the conference call through the
Internet or by calling the toll-free telephone call in North America as
indicated below. The conference call is scheduled for today beginning at 4:30 p.m. (Toronto
time) and can be accessed by visiting the website of a third-party webcasting
service we will be using, Canada NewsWire Ltd., at www.newswire.ca/webcast, at
least five minutes before the start of the conference call. Slides or other
statistical information to be used for the conference call can be accessed and
will be available for online viewing through www.newswire.ca/webcast on the
event title or through our website, www.inco.com, by clicking on the Latest
Presentations link on the homepage. The archival webcast of the presentation can be accessed via the Internet
through www.newswire.ca/webcast. A recording of the conference call can be
listened to until 11:59 p.m. (Toronto time) on November 2, 2004 by dialing
1-800-558-5253 in North America and by entering the reservation number
21208377. This recording is also available outside North America by dialing
416-626-4100. This news release contains forward-looking statements regarding the Company and
its Goro nickel-cobalt project, including capital cost estimates and targets,
expected nickel and cobalt capacity, cash costs of production of nickel based upon
certain assumptions, project schedule 8




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and expected timing of initial production and ramp-up of production to expected
capacity, changes in project configuration and certain other aspects
of the project, resumption of certain work, key milestones
relating to the project schedule and advancement of the project, returns on
investment, anticipated sources of financing and agreements and other
arrangements with the provinces of New Caledonia, the Government of
France, Sumitomo Metal Mining Co., Ltd., Mitsui & Co., Ltd. and other parties. 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 and other metals, the capital cost, scope,
schedule, ramp-up and other key aspects of the Goro project, the timing of receipt of
all necessary permits and regulatory approvals, engineering and construction
timetables, and the necessary financing plans, including necessary
agreements with the
French Government and the Government of New Caledonia and its Provinces, and
arrangements for, and joint venture, partner or similar investments and other
agreements and arrangements associated with, the Goro project. - 30 - IN 04/19
October 19, 2004 For further information:Media Relations:
Investor Relations:
or www.inco.com
    
    Steve Mitchell (416) 361-7950
Sandra Scott (416) 361-7758
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