Xstrata Nickel is a 49% joint-venture partner in the development of the massive Koniambo ore body in New Caledonia. Société Minière du Sud Pacifique, the development arm of the North Province of New Caledonia, is the 51% partner. Koniambo is a world-class resource. Nickel is contained in both saprolite and limonite with grades that compare favourably with other laterite deposits in the world. Konimabo will be a life-long, low-cost asset with a resource base currently comprised of 75.6 million tonnes of measured and indicated saprolite resources at 2.47% nickel, and 83 million tonnes of inferred resources at 2.5% nickel. Nickel would be extracted using a smelting process to produce ferronickel, utilizing an updated version of the process used at our Falcondo operations, called nickel smelting technology (NST). Initially, nickel will be extracted from the saprolite part of the orebody. In future expansions, there are plans to extract nickel from the limonite orebody, an undiluted inferred resource of 100 million tonnes of 1.6% nickel, using a hydrometallurgical process.