2002 Environmental Report

Inco is one of the world's premier mining and metals companies.
In
business for over 100 years, we employ over 10,000 people around the
world at our mining operations, production facilities, technology centre
and in our extensive marketing and sales network that extends to over
40 countries. As the world's second largest producer of nickel, we
supply approximately 20 per cent of the annual total global demand for
nickel. We are also a major producer of copper, cobalt and precious
metals and a producer of value-added specialty nickel products.
We are committed to promoting sustainable development in all our

operations and to integrating environment, health, safety and social
responsibility considerations into our decision-making. We work actively
with the communities in which we live and operate to improve the
overall quality of life.
Last year, we posted our first on-line annual Environmental, Health and
Safety Report on our corporate web site detailing our 2001
performance in these important areas of our business and we are
pleased to present our 2002 Environmental, Health and Safety Report.
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Executive Summary/ Operational Highlights ......................................... 1
Performance Scorecard ............................................................................. 1
Message to Stakeholders ....................................................................... 3
Health, Safety & Environmental Management Systems .......................... 6
Audit Program ........................................................................................... 6
Product Stewardship ................................................................................. 8
Recycling Nickel and Other Metals ........................................................................... 9
Waste Management and Waste Diversion................................................................10
Environmental Performance ................................................................ 11
Compliance ............................................................................................. 12
Energy Use and Conservation.................................................................. 13
Air Quality ............................................................................................... 14
Carbon Dioxide and the Kyoto Protocol ...................................................................14
Sulphur Dioxide ......................................................................................................15
Ground Level Concentrations of SO2 ........................................................................16
Particulates and Metals ..........................................................................................17
Water ...................................................................................................... 18
Water Quality .........................................................................................................19
Land Use ................................................................................................. 20
Land Reclamation ...................................................................................................20
Closure ...................................................................................................................21
Environmental Research ......................................................................... 22
Development Projects ............................................................................. 23
Goro Nickel Project.................................................................................................23
Voisey's Bay Nickel Project .....................................................................................25
Occupational Health ............................................................................ 26

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Health Research ...................................................................................... 27
Safety.................................................................................................. 28
Communities ....................................................................................... 29
Sudbury Operations ................................................................................ 29
Thompson Operations ............................................................................. 30
Port Colborne Refinery ............................................................................ 31
PT Inco.................................................................................................... 32
PT Inco Hospital .....................................................................................................33
Goro Nickel Project ................................................................................. 33
Voisey's Bay Nickel Project ..................................................................... 34
Performance Profiles ........................................................................... 35
Reducing Particulate Emissions............................................................... 35
Effluent Treatment .................................................................................. 36
Phytomining............................................................................................ 36
N0x Reductions ....................................................................................... 37
Protecting Coral Reef .............................................................................. 38
Glossary .............................................................................................. 39
Contact Us ........................................................................................... 41
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Executive Summary/ Operational Highlights
This, our second Environmental, Health and Safety Report, highlights our progress and performance
throughout Inco's global operations for the year ended December 31st, 2002. As in last year's
report, we have relied on the Global Reporting Initiative (GRI) guidelines pertaining to
environmental disclosure, wherever possible, in the preparation of this report.
In 2002, we continued to emphasize the development of sound environmental, health and safety
management systems and the need for strong audit programs to ensure compliance with the
standards that we set for ourselves and are set for us by governments.
Our goals for 2003 and beyond focus on the efforts required to achieve the continuous improvement
in our performance that we expect.
Performance highlights for 2002 include:
• Reduced particulate emissions significantly from PT Inco in Indonesia.

• Strengthened our reclamation efforts at our Sudbury and Thompson operations and at PT
Inco in Indonesia both in terms of the extent of the areas reclaimed and the improving
quality of the reclamation.
• Commissioned a surge pond at the Copper Cliff Wastewater Treatment Plant, Sudbury,
Ontario that has provided improved water balance management at that facility and has
reduced the release of untreated effluent.
• Refurbished the electrostatic precipitators in the smelter at Thompson, Manitoba, resulting
in improved particulate control and the completion of a pre-feasibility study to install new
particulate control technology at this facility.
• Undertook further groundwater studies at the Clydach Refinery, Swansea, Wales and
Sudbury Operations, Sudbury, Ontario to better understand the groundwater regimes at
these facilities.
• Improved our performance at both Sudbury and Thompson operations with respect to
ground level concentrations of sulphur dioxide.
• Continued to examine ways of improving our particulate emissions at PT Inco by
investigating better ways of controlling emissions from the kilns and furnaces.
Performance Scorecard
Safety
Our safety objectives for 2002 and our performance against those goals are summarized below.
2002 Major Objectives
• Achieve an additional 25 per cent reduction in disabling injury rate.
2002 Performance
• Achieved an overall reduction in disabling injury frequency rate to 1.7 from 1.8 per 100
employees. Tragically, we had two employee fatalities in 2002.
• Surpassed the 25 percent reduction in disabling injury frequency rate target at Clydach and
Acton.
• Achieved an 11 per cent improvement in safety performance at Thompson Operations.
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2003 Objective
• Achieve a 25 per cent reduction in disabling injury frequency rate year over year.
Environment and Health
Our environmental objectives for 2002 and our performance against those goals are summarized
below:
• Roll out updated Environmental, Health and Safety Policy.

• Improve compliance at all operations.
• Achieve further reductions in Greenhouse Gas (GHG) emissions.
• Reduce nickel emissions from the Copper Cliff Nickel Refinery, Sudbury Operations.
• Upgrade and repair the particulate collection system at Thompson Operations.
• Develop and implement a consolidated workplace health management system for Canadian
and UK Operations.
• Commence SO2 and metal emissions abatement program at Sudbury Operations.
2002 Performance
• Distributed new Environmental, Health and Safety Policy across Inco organization to
employees and discussed new policy at the operations.
• Achieved improvements in compliance for particulate and metal emissions at PT Inco,
Sudbury and Thompson operations.
• Continued to meet our annual Canadian objectives of a one per cent reduction in GHG
emissions and achieved an overall reduction of eight per cent for GHGs from the 1990
emissions baseline.
• Completed the preliminary engineering study on particulate and metal emissions at
Thompson Operations.
• Improved the particulate collection system at the Thompson Smelter and reduced
particulate emissions from that source by 11 per cent.
• Completed a workplace health management system for Canadian and UK operations.
• Launched on-line 2001 Environmental, Health and Safety Report on www.inco.com.
• Received Board approval for Capital Acquisition Request for the Fluid Bed Roaster SO2 and
particulate control system.
• Created a website that provides real-time information on air quality in the Sudbury region.
(www.inco-sudbury-airquality.com)
2003 Objectives
• Consolidate an integrated management system (health, safety and environment) for Inco's
operations.
• Reduce metal releases in effluent from the Copper Cliff Smelter by ten per cent.
• Prepare tailings/effluent management plan for Thompson Operations for 2003 to 2015.
• Prepare closure plans for Voisey's Bay Nickel Company and Exmibal in Guatemala.
• Reduce sulphur dioxide ground level concentrations at Thompson Operations by 25 per
cent.
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Message to Stakeholders
Over the past year, we continued to turn our environmental, health and safety commitments into
actions at all levels of the company. Among our pivotal achievements, we updated our
Environmental Health and Safety Policy, in keeping with Inco's progressive health, safety and
environment philosophy, and formalized our commitment to the core tenets of sustainable
development. The Policy is the cornerstone of Inco's environmental, health and safety management
effort - to turn enhanced commitments into future performance accomplishments. As part of this
initiative, we introduced the Policy to Inco operations and profiled it in Inco Exchange, a publication
which is distributed to employees.
In 2002, we introduced our web-based Environmental, Health and Safety Report as part of our
effort to inform the public of our activities. We also strengthened our corporate governance by
establishing an Environmental, Health and Safety Committee of the Board of Directors, dedicated to
overseeing our policies, compliance record and environment, health and safety performance
throughout the company.
We made progress in a number of key performance areas - delivering on many of the goals that we
set for ourselves. Among our accomplishments, we received the Leadership Award for the Mining
Sector from Canada's Climate Change Voluntary Challenge Registry (VCR Inc.) for our ongoing
commitment and leadership in greenhouse gas reductions. We also received Canada's Energy
Efficiency Award from Natural Resources Canada for achievements in energy conservation at our
Sudbury Operations and dramatically improved our water management practices at the same
operation. While there remains much work to be done on existing and emerging challenges, we are
proud of the continuous improvements made in 2002 and detailed in this - our second progress
report on environmental, health and safety performance.
A Safe and Healthy Workplace
During 2002, we continued our efforts to provide our employees with a safe and healthy work
environment. Together, our operations achieved improvements in safety performance. We made
gains in safety performance at some facilities notably at our Clydach and Acton refineries in the
United Kingdom as well as our operations in Thompson and Sudbury. And, at our Voisey's Bay
construction site, we achieved an impressive 200,000 person hours without a single medical aid.
Despite steady performance improvements and exemplary safety records at many Inco facilities, we
are deeply saddened by two fatalities at our Sudbury operations and at PT Inco. Mr. Brian Laughlin
was fatally injured at the Copper Cliff Nickel Refinery in March 2002 and Mr. Tato Harson was fatally
injured at PT Inco in July 2002. We extend our deepest sympathy to their families. These fatalities
serve as potent and tragic reminders that safety performance requires constant vigilance at all
levels of the company at all times. Our goal remains unchanged - the elimination of all accidents.
Community Engagement
For over 100 years, we've worked hard to earn the respect of our many stakeholders - employees,
investors and our communities. Our commitment to enhance the quality of life in the many
communities where we live and operate is not only important to us, but is a critical measure of our
overall performance. During 2002, we made significant progress in engaging our stakeholders by
enhancing transparency and meaningful dialogue in our communities. Whether through the Public
Liaison Committee in Thompson, the multi-stakeholder committees in Sudbury, or the Community
Based Risk Assessment initiative in Port Colborne, this public input is invaluable to the work we do.
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And in Voisey's Bay, the Impact and Benefits Agreements signed with the Labrador Inuit Association
and the Innu Nation, we believe, are living models of the socio-economic and environmental
partnership arrangements integral to our commitment to sustainable development at that
development project. In 2002, we continued to build working relationships with our neighbouring
communities, contractors and local employees at Goro to strengthen mutual understanding and
cooperation. At Goro Nickel, and in keeping with our track record at operating jurisdictions around
the world, we believe in the principle of hiring local people to the greatest extent possible, and will
do so when our project resumes. To meet that goal, consultation with the Government of New
Caledonia and the municipalities of Yaté and Mount Doré will be ongoing throughout 2003. All of
these initiatives serve to deepen our understanding of the needs of our neighbours, beyond our
regulatory obligations, on a wide-range of important community-related environmental, health and
safety, and social issues.
Making Good Progress
This year, we advanced our environmental performance by strengthening regulatory compliance and
minimizing the environmental impacts of our operations. We achieved dramatic reductions in
particulate emissions at PT Inco and Thompson. Our Sudbury and Thompson operations are
progressing in their efforts to develop a consistent health, safety and environmental management
system that can be implemented throughout the company. Inco TNC Limited in Japan and Korean
Nickel Corporation received ISO14001 certification during the year. In Sudbury and at Port
Colborne, we also continued to address the legacy issues arising from our historic operations in
those communities. At our development properties, our progress on the environmental front is
encouraging. At Goro Nickel, we submitted the Installations Classées permit application for the key
project components and we agreed to implement all of the independent recommendations to
minimize environmental impacts during development and commercial operation. At Voisey's Bay, we
initiated an environmental monitoring program with the participation of the Aboriginal communities.
The 2002 monitoring program provides an excellent stepping stone to support the extensive
construction program that will take place at Voisey's Bay in 2003. Moving forward, we continue to
proceed with our environmental management and research programs that will turn our commitment
to sustainable development into actions at our growth projects.
Addressing Future Challenges
Across our mature operations, we are facing increasingly stringent environmental, health and safety
requirements in all jurisdictions. These new requirements pose a challenge to an industry that is
dependent upon the properties of its ore bodies and that must make significant upfront investments
in its processes and facilities. We also face uncertainties about the impacts on our operations of
emerging requirements such as the Kyoto Protocol. Our commitment and actions to reduce
greenhouse gas (GHG) emissions began long before the Kyoto Protocol was signed and ratified by
the Canadian government late last year. By the end of 2002, our Canadian operations had already
achieved GHG reductions of eight per cent, below 1990 baseline levels, exceeding the six per cent
reduction required under Kyoto by 2008-2012. While we have an established record of voluntary
GHG reductions, our competitive reality under Kyoto will be that many of our competitors outside of
Canada, such as those operating in Australia, will not face the same competitive and regulatory
pressures arising from Kyoto. Correspondingly, our competitors will not have to face the same
economic, environmental and social impacts that Canada's Kyoto commitments will bring upon Inco.
Our goal will be to work in consultation with the Canadian government to ensure that our past and
future accomplishments in energy conservation and GHG reductions are recognized and accounted
for going forward while safeguarding our global competitive position.
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At each Inco operation, the commitments and efforts of our employees are critical to delivering on
our environmental, health and safety performance goals. Their efforts over the past year have been
essential to the accomplishments detailed in this progress report and to finding solutions to
challenges we face. Our goal is to continue to earn the respect of our many and diverse
stakeholders - employees, shareholders, customers and importantly, in the communities where we
live and work. Across our operations, we want to and believe that we conduct our business in an
ethically and socially responsible way and thus demonstrate through our actions Inco's
commitments to being a good neighbour and a community builder. Moving into 2003, we are
formalizing Inco's well-established corporate social responsibility initiatives and developing a
corporate social responsibility report for stakeholders. This report will complement our financial and
environment, health and safety disclosure initiatives and highlight the scope and breadth of our
social responsibility activities, community partnerships and the high value we place on Inco's social
contribution to sustainable development.
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Health, Safety & Environmental Management Systems
We continue to pursue the goal of continuous improvement in our environmental, health and safety
performance through the ongoing review of our activities. As part of that effort, we reviewed our
Environmental, Health and Safety Policy, which was then updated and implemented during 2002.
Reflecting society's and Inco's contemporary attitudes towards environmental and social issues, this
updated Policy embraces social responsibility as an essential part of our commitment to sustainable
development. The updated Policy requires that Inco employ appropriate environmental management
systems that are intended to continually improve performance consistent with defined goals.
Continuous improvement is the focus of our environmental management effort.
In 2002, the Board of Directors established an Environment, Health and Safety Committee. This
committee is charged with overseeing of Inco policies, practices and programs pertaining to
environmental, health and safety issues relating to our businesses and operations, as well as
monitoring compliance with applicable safety, health and environmental laws and regulations on a
global basis.
2002 Performance Highlights:
• Distributed updated Environmental, Health and Safety Policy to employees worldwide. Also
held discussions with key staff at each operation to ensure that employees were aware of
the policy and its requirements.
• Received ISO 14001 Environmental Management certification at Inco TNC Limited and
Korean Nickel Corporation, two Inco joint ventures. By year-end 2002, a total of six Inco
facilities had received ISO 14001 accreditation.
• Continued to formalize a consistent environment, health and safety management system at
our Sudbury and Thompson operations.
• Completed nine facility audits.
• Issued our first on-line Environmental, Health and Safety Performance Report.
Audit Program
Auditing Our Environment, Health and Safety Performance
Our audit program is a key component of our environmental, health and safety management
system. It covers sixteen functional areas (six environmental, two health and eight safety) and
three administrative areas. Annual audits are carried out at major Inco facilities and all facilities are
scheduled for audit at least every three years. The functional areas selected for audit are based on
elapsed time since the last review as well as prior performance. Functional areas requiring
improvement are audited more frequently.
Our audit program provides assurance to management and Inco’s Board of Directors that effective
systems are in place to manage environmental, health and safety risks. It verifies compliance with
laws and regulations, conformance with corporate guidelines, operational policies, procedures and
good management practices. It helps operating units identify opportunities to improve management
systems and establish priorities for further action. A third-party audit consultant also provides the
committee with an independent review of Inco's audit program and audit performance.
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Audit training provides the tools for environment, health and safety and operations employees to
increase awareness and strengthen our performance in this area. In 2002, we initiated an
environment, health and safety audit training program and 36 Inco employees from across the
company participated in the first year. Previously, all audit training was provided externally, but we
see value in providing this training internally.
2002 Performance Highlights
In 2002, nine Inco facilities were audited.

Of the facility audit findings identified in
2002, one third were associated with
regulatory non-compliance. The majority of
these regulatory non-compliance findings
were safety-related. To correct audit
findings, facilities are required to:
• Update facility action plan status

annually;
• Review action plans under
corporate environment, health and
safety audit program to ensure
that actions contemplated will
effectively address audit issues;
• Report findings are reported by
corporate environment, health and
safety audit program to the head of
operations; and
• Work with corporate environment,
health and safety staff to address
any severe audit findings.
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Product Stewardship
Inco product stewardship is an integrated system to identify, manage and reduce environmental,
health and safety risks associated with Inco products throughout their life cycle - from production,
distribution, use, re-use, recycle and final disposal. Our core values play a fundamental role in how
Inco products are made, under what conditions they are produced and how they are handled and
marketed.
• Product stewardship supports our corporate social responsibility commitments, assists in

"greening" Inco's product chain and adds value by:
o Providing accurate information to customers on the safe use, packaging, transport
and recycling of Inco products;
o Addressing customer queries and concerns proactively;
o Assisting customers with their "product take-back" obligations;
o Focusing on performance regarding the environmental, health and safety aspects of
the product life cycle from the customer onward.
Product stewardship is important for our

customers and shareholders, for the
communities in which the company works
and the general public. Product
stewardship also helps us demonstrate the
responsible management of our products
and materials that society expects today.
Inco product stewardship includes eight

programs to align our business practices
and compliance requirements. These
programs consist of:
• proper hazard identification of our

products,
• country chemical import/export
rules,
• customs and permitting,
• product movement
documentation,
• hazard communication,
• environmental packaging rules,
• recycling,
• addressing customer queries.
In addition, we collaborate with other

nickel producers through the Nickel
Development Institute and the Nickel
Producers Environmental Research
Association. A key function is to inform
the public on the safe use of nickel
products. Examples include research on
the hygiene benefits of using stainless
steel for cooking, and cautions about
nickel dermatitis from pierced earrings.
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Recycling Nickel and Other Metals
Nickel is plentiful and over a million tonnes of nickel are mined each year. However, nickel is also
one of the most recycled materials in today's global economy. In addition, most nickel-containing
products have a long life - on average over 25 years - and high durability. Therefore, it is difficult to
develop metrics for the amount of nickel in circulation based on short time horizons. Nickel neither
deteriorates nor loses any of its physical or chemical properties when recycled. The economics of
nickel recycling also result in the recovery of other metals as by-products that might otherwise not
have been recovered.
We recycle materials containing nickel, copper, cobalt, gold, silver and other precious metals. In
2002, we processed over 30,000 tonnes of recycled material at our Sudbury and Thompson
operations. We recover platinum group metals (PGM), plus gold and silver, at our Acton Refinery.
Recycling of Nickel-Containing Stainless Steel
The stainless steel industry is by far our largest nickel customer. Stainless steel consumes
approximately 60 per cent of the annual world production of primary nickel. Stainless steel
producers are also the largest consumers of nickel-containing scrap metal. Approximately 50 per
cent of the nickel in new stainless steel comes from nickel-containing scrap metal.
High Temperature Metals Recovery at Inmetco
The International Metals Reclamation Company, Inc. ("Inmetco"), an Inco subsidiary, is a high
temperature metals recovery (HTMR) facility located near Pittsburgh, Pennsylvania. Inmetco is the
only company that uses HTMR technology to recover nickel, chromium and iron from the North
American specialty steel industry. It also operates the only commercial cadmium recovery operation
in North America, producing 99.95 per cent pure cadmium from spent nickel-cadmium ("Ni-Cad")
batteries.
Since 1978, Inmetco has diverted more than 1.3 million tonnes of material from North America's
waste streams. In 2002, it recovered 18,613 tonnes of iron, 3,729 tonnes of chromium, 3,655
tonnes of nickel and 220 tonnes of molybdenum.
Recycling Precious Metals at the Acton Refinery
Approximately 67 per cent of feedstock at Inco's Acton Refinery outside London, England is from
secondary sources such as electronic appliances. Acton's production exceeds 1 million troy ounces
of precious metals and has approached 1.4 million troy ounces in recent years. Following the
completion of the first phase of an expansion program, Acton's production capacity increased to 1.5
million troy ounces of precious metals in 2002. Design details are well advanced for the second
phase in the expansion program which would bring production to over 2 million troy ounces within
the next few years, in line with Inco's plans and assessment of this growth market. The main use of
PGMs is in the manufacture of automobile catalysts designed to protect the environment. We believe
that Acton is well positioned to take advantage of this growth market.
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Waste Management and Waste Diversion
Wastes from the mining, concentrating, smelting and refining of metals must be properly managed.
Our facilities produce different categories of waste depending upon the type of operation. These
categories include:
• mineral wastes
• hazardous wastes from processing operations
• non-hazardous solid wastes
Management systems and plans are in place at all our facilities to ensure that these wastes are
carefully managed, stored and monitored.
In addition to using secondary nickel, copper, cobalt, gold, silver and precious metals as a feedstock
at our operations, waste diversion is actively practiced at all our facilities. For example, at our
Thompson Operations, waste oil is being used as an energy source to provide heat for mine
ventilation air.
• Approved a polychlorinated biphenyls (PCB) removal plan at our Sudbury Operations that
will remove equipment containing PCBs from service by 2006 and destroy PCB wastes by
the end of 2007. PCB materials at a number of sites were sent to approved hazardous
waste management sites for destruction.
• Produced and sold approximately 550,000 tonnes of sulphuric acid avoiding the release of
an equivalent amount of SO2 to the atmosphere. The sulphuric acid, produced in our acid
plant at the Copper Cliff Smelter from sulphur dioxide recovered from process gases, is our
most important waste by-product.
• Completed a Waste Management Cost Reduction Strategy and Audit and Reduction Work
Plans for 20 Ontario facilities.
• Received a Certificate of Appreciation at our Thompson Operation from the Thompson
Recycling Center in recognition of valuable contributions to recycling in the community.
• Recycled approximately 40 per cent of the non-hazardous waste at the Acton Refinery. In
addition, the spent scrubber liquor from the sulphuric acid scrubber, employed to capture
ammonia emissions, produces a high quality ammonium sulphate solution that has
agricultural use.
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Environmental Performance
We seek to meet the environmental, health and safety requirements of the jurisdictions in which we
operate at our facilities worldwide and to surpass these standards wherever possible. During the
past year, we continued to improve our performance, making progress in the important areas of
particulate handling, land reclamation and our management of water and effluent. Environmental
planning of our development projects has been a priority, ensuring that our new sites and
operations are designed and constructed to meet environmental standards.
We track our performance by examining numerous measures relating to our use of primary
resources and the amounts of waste that we produce and release into the environment. Our
objective is to do more with less - to use fewer resources to produce more nickel and other metals -
and release less waste into the environment.
The charts below are representative of our resource use and our outputs in terms of key emissions
and releases to the environment. The charts express the inputs and outputs of Inco in terms of
intensity - the amount of a substance that we either consume or release per one tonne of metal that
we produce.
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Compliance
To conform to the requirements of Inco's Environmental, Health and Safety Policy, we will assess,
plan, construct, operate and decommission all projects and facilities in compliance with all applicable
legislation. We will seek not only to meet but, where possible, surpass standards set by applicable
legislation through the diligent application of technically proven and economically feasible measures.
We acknowledge that this is a challenging task for a large mining company and we strive to improve
our compliance record. This section on environmental performance reports on those areas where we
have been in non-compliance, or where we have experienced accidental releases of contaminants in
excess of standards during 2002. We also identify those areas where we are targeting performance
improvements.
Fines and Penalties
During 2002, the Ontario Ministry of Labour laid five charges against Inco as a result of the fatality
that occurred in the oxygen plant at the Copper Cliff Nickel Refinery at our Sudbury Operations
during 2001. These charges are currently before the courts.
Our Sudbury Operations submitted a guilty plea on one count of breaching Section 8(3) of the
Ontario MISA Reg. (O. Reg. 560) involving a pH exceedence that occurred at the Garson Mine
effluent treatment plant facility in May 2000. The resulting fine was Cdn. $ 6,250.00.
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Energy Use and Conservation
The Government of Canada's report entitled 2001: Canada's Third National Report on Climate
Change states "A full appreciation of Canada's challenge in limiting its GHG emissions requires
recognition that there are structural characteristics - such as cold climate, expansive geography,
and an energy-intensive economic structure - that inherently lead to net higher per capita energy
use and GHG emissions in comparison with most other countries."
The extraction and processing of ores to produce metals is energy-intensive. We are continuously
seeking new ways to reduce our energy intensity, measured as the amount of energy consumed per
tonne of metal produced, through technical advances, new equipment and processes as well as
employee-based initiatives.
We benefit from the use of hydro-electric energy at our Canadian and Indonesian operations,
reducing our dependence on non-renewable energy sources. In Thompson, we benefit from the
availability of hydro-electric power provided by Manitoba Hydro, while in Sudbury, we own and
operate a hydro-electric plant that supplies ten per cent of our power needs. In Indonesia, we own
and operate two hydro-electric facilities generating a large portion of the power needed to meet the
energy needs of our PT Inco operations as well as providing electricity for surrounding communities.
Reducing energy intensity has several environmental advantages such as reducing air emissions,
including greenhouse gases associated with the production and use of energy. It also saves money,
conserves non-renewable sources of energy and improves productivity.
Our ongoing focus on energy conservation over the past several years has delivered significant
reductions in energy consumption. Between 1990 and
2001, we reduced total energy consumption in our
Canadian operations by 13 per cent and energy
intensity by 8 per cent respectively over the same
period. We are committed to improving energy
intensity by one per cent per year between 1995 and
2005.
Employee involvement, ideas and commitment have

been essential to the significant progress we have
made in improving energy efficiency and reducing
energy consumption. Through awareness programs
encouraging employees to develop new, practical ways
to save energy, our Sudbury Operations have achieved
a high level of success in reducing energy use.
We are redoubling our efforts to further decrease our

overall energy consumption across the company. With
increasing energy demands required to extract ore
deeper underground and farther away from our
processing facilities, our operations are exploring
innovative and new ways to achieve additional energy
reductions in the future.
• Consumed 106.9 gigajoules energy per tonne of metal produced worldwide compared to
111.0 gigajoules per tonne in 2001, an improvement of 3.8 per cent.
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Air Quality
The main air quality issues arising from the extraction and processing of nickel-bearing ores are
emissions of particulate and metals, sulphur dioxide (SO2) and greenhouse gases (GHG).
The particulates and metals are formed and entrained in process gases arising from high
temperature metallurgical processes. SO2 emissions result from smelting of sulphide ores from our
smelters at Thompson and Sudbury. At PT Inco, the processing of laterite ores (nickel oxide) also
produces SO2 as a by-product of the reduction of the oxide to a sulphidic nickel matte.
Most of Inco's GHG emissions result from carbon dioxide formed as a result of energy use. We are
reducing our energy use per unit of production, resulting in increased energy efficiency and reduced
GHG emissions per unit of production (termed intensity). In 2002, we strengthened our
conformance with regulations on particulates, metals and SO2 and reduced our overall GHG
emissions per unit of production, on a global basis. We achieved these gains through improved
operating practices, installation of new equipment and voluntary reductions in production during
periods of poor air dispersion. We are continuously improving our ability to efficiently remove
particulates, metals and sulphur dioxide from process gases prior to their release into the
atmosphere.
Carbon Dioxide and the Kyoto Protocol
Reducing greenhouse gases (GHG) is a global challenge. Since 1990, we have made significant
strides in voluntarily reducing GHG emissions arising primarily from energy used in our mining,
concentrating, smelting and refining operations.
We are committed to improving our energy efficiency and reducing GHG emissions to achieve
further cost reductions and to contribute to societal efforts to reduce GHGs. With facilities located in
Canada, Japan and the United Kingdom, three countries that have ratified the Kyoto Protocol, we
are working with respective governments to define Inco's obligations under Kyoto. In 2002, our UK-
based operations negotiated covenants with the British government to reduce their emissions of
GHGs.
Our Canadian operations have already made a significant contribution to reducing GHGs achieving
voluntary reductions of eight per cent since the baseline of 1990. Our current reductions exceed the
percentage reduction required to meet Canada's Kyoto commitments. Canada ratified the Kyoto
Protocol at the end of 2002. However, the Government of Canada had not developed an
implementation plan at the time of ratification and the government's view on credit for early action
is unclear. As a result, this has left Inco in an uncertain position regarding our commitments to
energy reduction programming, as well as the impacts that the Kyoto Protocol might have on our
competitive position. We are anticipating negotiating a GHG covenant with the Government of
Canada in the coming year.
• Our global GHG intensity was 4.47 tonnes CO2 equivalent per tonne of metal produced,
down from 4.68 tonnes/tonne in 2001. This represents a 4.5 per cent reduction in GHG
intensity or an absolute reduction of 100,900 tonnes GHG from the 2001 emissions.
• Received the 2003 Leadership Award for the Mining Sector from the independent
government technical panel of Canada's Climate Change Volunteer Challenge Registry Inc.
(VCR) for GHG reduction initiatives. For the fourth consecutive year, our Canadian
operations also earned the highest Gold Level status from VCR Inc. Both awards were given
in recognition of our extraordinary commitment, action and leadership toward the voluntary
reduction of GHGs. Inco's Progress Report is available on VCR Inc.'s website at www.vcr-
mvr.ca.
14
Sulphur Dioxide
Sulphur Dioxide Abatement
We have pursued an aggressive sulphur dioxide reduction program at our Canadian operations since
the late 1980's through to the present. With an investment of US$530 million, our sulphur dioxide
(SO2 ) abatement program has reduced our SO2 emissions from over 700,000 tonnes per year
during the 1980's to below the present regulatory limit of 265,000 tonnes per year.
SO2 emissions remain an ongoing challenge at our smelting operations in Sudbury, Thompson and
PT Inco as we work to achieve further reductions and meet ambient air standards. We are
undertaking extensive research to explore options to further reduce our emissions of SO2 and also
meet the regulations pertaining to ground level concentrations (GLC) of SO2 in ambient air.
In 2001, we announced an additional US$76 million investment in fluid bed roaster off-gas
scrubbing technology to achieve additional reductions in SO2 emissions. We received Board approval
to proceed with the Fluid Bed Roaster SO2 and particulate control system in 2002. The project will
increase the sulphur capture at our Sudbury Operation to over 90 per cent through the system and
also reduce metal emissions.The project is proceeding and is scheduled for completion in 2006.
Sudbury Operations
• Total SO2 emissions from our Sudbury Operations were 243,000 tonnes in 2002, compared
to 232,000 tonnes in 2001 and 223,000 tonnes in 2000, well below our annual limit of
265,000 tonnes. The increase in 2002 emissions over 2001 is the result of increased
production.
• Sudbury Operations recorded an SO2 intensity of 1.11 tonnes per tonne of metal produced
in 2002 comparable to 1.07 tonnes per tonne of metal for 2001.
Thompson Operations
• SO2 emissions at our Thompson Smelter were 196,500 tonnes in 2002 compared to
217,000 tonnes in 2001 and 215,000 tonnes in 2000.
• Thompson Operations reported an SO2 intensity of 4.05 tonnes per tonne of metal produced
in 2002 compared to 4.10 tonnes per tonne of metal produced in 2001.
PT Inco
• PT Inco reported SO2 emissions of 69,276 tonnes, or an intensity of 1.16 tonnes per tonne
of nickel produced in 2002. This compares to 77,270 tonnes, or an intensity of 1.20 per
tonne of metal produced in 2001, and 66,440 tonnes, or an intensity of 1.12 tonnes per
tonne of metal produced in 2000.
Joint Ventures
• At Inco TNC Limited in Matsuzaka, Japan, startup operations at the plant have resulted in
complaints from local residents regarding odours. These odours are caused by emissions of
SO2. Plans are now in place to install emission treatment facilities to address this startup
situation and the problem should be resolved in 2003.
15
Ground Level Concentrations of SO2
Our Sudbury and Thompson operations continued to make progress in reducing exceedences of
ground level concentrations (GLC) of SO2 during 2002 through emissions reduction programs
enabling operations to curtail production levels when weather/dispersion conditions are
unfavourable. Due to these programs, the number of exceedences continued to decline in 2002
across the company.
On February 12, 2002, the Ontario Ministry of the Environment (“MOE”) issued a control order
requiring reductions of SO2 emissions at the Copper Cliff Smelter, Sudbury Operations by 34 per
cent, from the current limit of 265,000 tonnes to 175,000 tonnes annually, by the end of 2006, and
reducing the limit for SO2 ground level concentrations (GLCs) by 32 per cent, from the then current
level of 0.50 parts per million (ppm) to 0.34 ppm, effective April 1, 2002. GLCs refer to the
concentrations of SO2 at ground level after being emitted from the emissions stack and forced to the
ground by atmospheric conditions rather than being dispersed. Fugitive emissions (emissions which
are caused when SO2 gases exit the Company’s operations through roof ventilation equipment,
windows, doors and other openings) are also controlled under the control order.
• Our Sudbury Operations experienced three exceedences of the new GLC limit of 0.34 ppm
for one hour from stack emissions and one exceedence from fugitive emissions compared to
three exceedences (two stack and one fugitive) of the previous higher limits of 0.50 ppm
for one hour in 2001. This significant improvement in GLC performance is attributable
mainly to production cutbacks at the Copper Cliff Smelter during poor air dispersion
conditions.
• Our Thompson Operations experienced seven exceedences of the Manitoba GLC limit of
0.34 ppm in 2002, compared to 12 exceedences in 2001. This improvement was achieved
largely by reducing production levels at the Thompson Smelter during poor air dispersion
conditions.
• There were no exceedences of the GLC for SO2 recorded at the Clydach Refinery in 2002
compared to one exceedence in 2001.
16
Particulates and Metals
Most particulate emitted from our smelting processes contains quantities of metals, such as nickel,
copper, lead and arsenic. Thus, particulate control is essential.
In 2002, we improved compliance for particulate emissions over 2001 due to better operating
procedures and new equipment installations. Globally, our particulate emissions intensity (tonnes
particulate per tonne of metal produced (t/t)) has decreased to 0.035 t/t in 2002 from 0.054 t/t in
2001 and 0.081 t/t in 2000. There has been a parallel decrease in the intensity of nickel emitted in
the particulate with the current annual nickel emissions intensity at 0.001t/t for 2002. Within these
global trends, we continue to watch for improvements in our larger particulate emitters, particularly
our Sudbury, Thompson and PT Inco operations.
Inco has agreed to reduce emissions of arsenic, copper, lead and nickel by 80 per cent by 2008
from the base year of 1988 at our Canadian operations. This initiative is part of the Strategic
Options Process negotiated with Environment Canada under the Canadian Environmental Protection
Act (1999). Beyond 2008, we are committed to reducing these emissions by 90 per cent.
Canadian and UK Operations
• Achieved zero exceedences of monthly and annual limits for stack particulate emissions in
2002, as was the case in 2001, at our Thompson Operations. The ESP was refurbished
during 2002 and an 11 per cent reduction in particulate emissions was achieved.
• Completed a study in 2002 to determine whether the particulate collection system at
Thompson could be overhauled to meet the 2008 objectives. The study, which examined
how to improve electrostatic precipitator performance and the possibility of installing an
additional electrostatic precipitator is under review.
• Reported four exceedences at our Clydach Refinery due to the particulate concentration
exceeding 30 mg/m3 for a period of at least one hour in 2002. A team has been working to
address these incidents, which are associated with a changeover of flues on the main stack.
PT Inco
• Several projects have been underway since 1999 to improve particulate-handling

processes. The most successful of these projects to date has been the installation of a new
ESP on Number 2 Dryer that has reduced particulate emissions in 2002 from an average of
5,000 mg/Nm3 to an average emission of 50 mg/Nm3.
• Experienced exceedences of the Indonesian Government’s standard of 350mg/Nm3. There
are ongoing efforts to control particulate emissions from the furnaces, the largest remaining
non-compliant source of these emissions. Work also continues to improve particulate
emissions from the kilns, which are non-compliant at times.
17
Water
Water plays an important role in the mining and processing of the metals that we produce. Water is
also a precious commodity and we need to exercise good stewardship over this resource.
Stewardship of our water resources manifests itself in two ways:
• volume of water used at our facilities; and

• quality of the used treated water that we release back to the environment.
Water Usage
Historically, water management for large mining operations was synonymous with watershed
management. However, a changing regulatory system and environmental management has altered
how process water is handled. We strive to recycle as much process water as we can to limit the
volume of water that we take from the environment surrounding our facilities. Even with these
conservation efforts, we still use a large amount of water to maintain our processes. We used
almost 21 million cubic metres of process water in 2002, or 48.5 cubic metres per tonne of metal
produced, an 11 per cent increase over the approximately 43 cubic metres per tonne used in 2001.
Groundwater
While much of our stewardship focus is on surface water, both for intake of process water and
effluent discharged, we are also aware of the impact that our operations can have on groundwater -
the water that flows through the rock and soil below the surface. Studies of groundwater are
ongoing to determine our impacts on this water resource.
Clydach Groundwater Study
The Clydach Nickel Refinery developed a model to examine potential contamination of groundwater
in the area surrounding the operations. The study covers both the operational areas of the site and
the 'old' Works Landfill.
Primary benefits of the Clydach study are:
• a more accurate understanding of the sources of nickel in groundwater;

• the engagement of regulators in the evaluation process;
• identification of cost-effective solutions to protect groundwater sources at the refinery.
To date the groundwater testing confirms the model results, showing a decrease in the amount of
nickel leaving the site. The groundwater results provide a useful predictive tool in assessing
remediation and closure options.
18
Water Quality
We discharge about 20 million cubic metres of effluent on average per year. Effluent from our
processing operations is expected to meet a range of regulatory standards and guidelines regarding
the levels of contaminants contained in it at discharge. We operate effluent treatment plants to
ensure that we meet these standards and that the impacts of our effluent on the receiving waters
are minimal. Together with effluent treatment, we focus on water management to prevent any
accidental releases of untreated effluent and to better manage these releases during periods when
flows can be very high, such as during spring snow melt.
• Commissioned a new surge pond for the

Copper Cliff Wastewater Treatment Plant in
Sudbury in March 2002 - reducing the total
number of bypasses (releases of untreated
effluent) to one in 2002 from 18 in 2001. This
single exceedence occurred prior to the
commissioning of the surge pond. The total
volume released in 2002 was 3,450 m3
compared to 8,200,000 m3 in 2001.
• Recorded six bypasses at the Nolin Creek
Wastewater Treatment Plant during 2002,
compared to seven in 2001. A surge pond,
similar to the one constructed for the Copper
Cliff facility, will be commissioned during
2003.
• Experienced 12 exceedences of effluent quality
limits and two toxicity test failures at our
Sudbury Operations during 2002. The Port
Colborne Refinery had a single toxicity test
failure during 2002. All these events were
investigated and remedial actions taken.
• Exceeded the nickel limit of 0.5 mg/l for six
months in 2002 (January to May and
December) at our Thompson Operations. A
major study has been launched to determine the cause of this problem and to improve
management of the tailings containment area so that this issue can be resolved.
• Released untreated effluent at Birchtree Mine, Thompson, for two days in January 2002 due
to unavailability of material for the filtration unit. Improved material has been indentified
and spare material is kept on hand. The containment pond overflowed for several days in
May 2002 due to high spring runoff. To eliminate the problem, we plan to increase the
capacity of the containment pond above the effluent treatment plant in 2003 and improve
operating and maintenance procedures.
• Experienced ongoing effluent discharge exceedences for soluble nickel at both effluent
release points at PT Inco operations. These exceedences are above the Indonesian
Government limit of 0.55ppm nickel in solution. A program has been instituted to address
this situation by removing many major sources of nickel that end up in the effluent stream.
It is anticipated that the results of these efforts will be measurable in 2003.
• Experienced one limit exceedence in the release of effluent to a public sewer at the Acton
Refinery. This was a small alkali release, resulting in an exceedence of the daily average pH
limit. Operational changes were implemented to prevent recurrence. Acton does not release
to natural waters or land.
19
Land Use
Land is a vital resource that mining companies require for their operations. As with all natural
resources we come in contact with in the normal course of our operating activities, we are stewards
of the land we use. However, our use is temporary and the land will be returned to a safe and stable
condition post operations.
Inco’s mining and processing operations use 15,000 hectares worldwide. Through our responsible
use of this land, our activities generate significant economic activity, employ over 10,000 people
and contribute to our sustainable development efforts. Over the past 100 years of operation, this
productive use of land has resulted in accumulated legacy issues that we are now addressing at our
mature operations. Our next set of operational priorities for land stewardship will examine issues of:
• Placement of tailings and related issues, such as the generation of acid resulting from the
oxidation of sulphide materials in these tailings;
• Capping and vegetating areas such as slag piles;
• Revegetation to restore disturbed areas to a state that is compatible with the surrounding
ecosystem.
Our development projects are being designed to minimize the project footprint and to ensure that
reclamation and closure issues are an integral part of the design criteria. This will ensure that our
goals can be achieved.
Land Reclamation
We continue to practice progressive reclamation at all our operations. During 2002, we reclaimed
those areas of our operations that were no longer required in a manner that is compatible with the
surrounding environment.
• Commenced reclamation activities at our Sudbury Operations' Crean Hill Mine following the
cessation of mining in 2002. Activities included the relocation of waste rock into the West
Pit, demolishing all buildings and capping mine openings to the required standard.
• Completed the removal of all waste rock at the Whistle Mine site in Sudbury. Moved the
waste to the open pit and cleaned the original ground below the waste rock storage area to
minimize any residual acid generation. Results from the test plot to determine suitable
cover material for the filled open pit have been analyzed and the final covers will be put in
place in 2003.
• Continued flooding of tailings areas at Shebandowan Mine in 2002. The water from these
flooded areas met all applicable effluent discharge limits.
• Carried out a tree-planting program at the SOAB Mine, Thompson in collaboration with the
Manitoba Department of Conservation. During 2002, the demolition of the SOAB Mine
terminal building, service building and conveyor gallery was completed at a cost of
$450,000.
• Pumped out containment ponds at our Clydach, Wales facility. We will begin to infill and
reclaim these in 2003.
• Continued our program of progressive revegetation of surface mining areas at PT Inco. At
the end of 2002, our mining activities had encompassed a total of 2,541 hectares, of which
512 hectares are being actively mined and 2,029 hectares have been revegetated.
Also during the year, Inco specialists presented research on Inco's current land reclamation
programs in Canada, PT Inco and reclamation plans for the Goro Nickel project. To view these
papers http://www.inco.com/environment/healthandenvironment/reclamation.asp
20
Closure
Mining companies recognize that early and ongoing planning for closure is an important part of our
responsibility to the communities and jurisdictions in which we operate. We continue to prepare and
update closure plans for almost all our operations. Many jurisdictions now require planning for
closure during the early stages of project development. At the end of 2002, the current net present
value estimate to cover the decommissioning of Inco's operations was US$415 million. This
commitment is reviewed annually.
We also continue to review options for developing alternative closure strategies for our properties
and to support research that can assist us to achieve better, more cost-effective options.
• Received acceptance for the fifteen closure plans submitted by our Sudbury Operations
from the Ontario government.
• Produced financial assurances in the form of performance bonds for Crean Hill, Whistle and
Shebandowan mines. The amount of this performance bond was reduced to $27 million in
2002 from $35 million in 2001 based on the reclamation work that has been completed and
we expect further reductions in 2003.
• Received approval from the Manitoba government for closure plans submitted in 2001, for
Birchtree, SOAB and Pipe Mines in Thompson, Manitoba.
• Initiated preparation of a closure pan for the Thompson Mine, which we expect to submit to
the Government of Manitoba in 2003.
• Prepared a closure plan for our Voisey's Bay project and submitted this to the Environment
Management Board, consisting of representatives from federal and provincial governments,
the Innu Nation and the Labrador Inuit Association for review.
21
Environmental Research
Through our research program, we are working to reduce the environmental impacts associated
with the production and use of the metals we produce. In 2002, we continued to investigate new
ways of extracting and processing metal-bearing ores, as well as decommissioning and reclaiming
existing and inactive mine sites.
• Initiated site preparation of demonstration plant to test a hydrometallurgical process for

Voisey's Bay sulphide ores. The environmental advantages of this process include
converting sulphides to elemental sulphur and sulphates, which can be disposed of either on
land or in a submerged containment area. Our demonstration plant will increase our
understanding regarding the handling and stability of these solid wastes, allowing us to
make informed environmental decisions for developing the commercial plant.
• Committed capital and operating funds for an Innovation Centre at Memorial University in
St. John's, Newfoundland and Labrador. The Centre will assist Memorial University in the
development of leading-edge technologies for ore exploration, mineral processing
technologies based upon hydrometallurgical techniques and for applied environmental
studies.
• Tested waste rock, slag and tailings to create a durable, geotechnically sound and cost-
effective 'engineered' cover material for tailings working with the University of British
Columbia in Vancouver, British Columbia. If successful, this project could enable us to
reduce the environmental impacts from our tailings and beneficially use our inventory of
waste rock and slag.
• Continued testing cover materials for capping of an open pit mine that has been filled with
waste rock produced during mining. A silt/clay, clay mixture and a geosynthetic clay liner
are being tested for their ability to prevent acid rock drainage from sulphidic waste rock.
• Continued research and testing of phytoextraction of metal-accumulating plants to
remediate surface soils containing metals deposited from historical operations and for
incrementally extracting nickel from soils that naturally contain nickel.
• Continued research on the sources of metals, their pathways and impacts on species in the
environment for application to ecological risk assessments through The Metals in the
Environment (MITE) Research Network. In 2002, we participated in the Network's first
science policy roundtable bringing together Network participants and government decision-
makers.
• Continued research program on the impacts of nickel in the environment through The Nickel
Producers Environmental Research Association (NiPERA), including:
o detection of precise chemical species in air, water, soils and sediments.
o acute and chronic effects of nickel on aquatic organisms,
o mobility of nickel in waste sludges.
o availability of nickel for biological uptake in surface waters.
o developing predictive models of toxicity from chemical analyses of media such as
marine and fresh water.
• Continue research on emission reduction programs. There are six projects currently
underway studying different approaches to reduce emissions. We are looking at every
opportunity to see if it is technically feasible and can be done economically. To date, we
have spent about $3.5 million on this research.
22
Development Projects
As part of our growth strategy, we are actively developing two of the best undeveloped nickel ore
bodies in the world at Voisey's Bay, Newfoundland and Labrador and Goro in the French overseas
territorial community of New Caledonia.
In 2002, we began the commercial development of Voisey's Bay after reaching agreements with the
Government of Newfoundland and Labrador on the terms of the development and successfully
negotiating Impact and Benefit Agreements (IBAs) with the Innu Nation and the Labrador Inuit
Association. Environmental stewardship is an important aspect of these agreements.
The Goro deposit is a high grade, large undeveloped laterite ore body. Our Goro Nickel project is
designed to minimize impacts on the environment. In late 2002, we announced a comprehensive
capital cost review due to an unacceptable increase in the capital cost estimate for the project based
on new cost data and tends. While this review is expected to take at least six months into 2003,
some environmental projects and studies, as well as our community relations effort are continuing.
Goro Nickel Project
Inco's Goro Nickel project has incorporated key project design elements to minimize the
environmental impacts once our commercial operations commence, including:
• Storing water in an upper river basin for use during low flow periods to augment flows and
minimize any potential adverse effects on freshwater fish, fish habitat and riparian
vegetation communities;
• Piping treated effluent to a deep marine discharge location to safeguard freshwater
resources in local water bodies, estuarine and lagoon habitats, and coral reef communities
from potential adverse effects;
• Containing our tailings material within mined out areas and within the same watershed to
protect other watersheds from potential adverse impacts; and
• Siting our facilities to protect natural or ecological reserves.
Land reclamation, using native species for revegetation, is an important part of our ongoing
environmental program at Goro Nickel. Approximately 6,000 seedlings have been planted in a
dormant gravel pit to test the effectiveness of this form of revegetation.
• Submitted the application for an operating permit (Demande d'autorisation pour exploiter
des Installations Classées, (IC)) to the President of the South Province of New Caledonia.
The South Province sought public comment and an independent third-party review of the
application. This comprehensive application included:
o project summary
o description of the location of project components
o characterization of materials and substances
o emissions and effluents
o environment, health and safety impact assessment
o description of potential catastrophic events
o assessment of industrial risks
o environment, health and safety management plan.
• Agreed to implement all the independent third-party recommendations concerning the
proposed development and on-going operation of Goro Nickel.
23
• Received the overall construction permit for the commercial facilities, as well as a number
of operating permits for various ICs, including the batch plant and main sewage treatment
plant as well as permits for generators and workshops.
Environmental Monitoring
Through the life of the project, Goro Nickel will conduct environmental monitoring in partnership
with the New Caledonian Institut de recherché pour le développement (IRD). Joint monitoring
initiatives will include:
• Establishing detailed botanical inventories within the project area to assist in the
development of a mitigation plan for rare and endangered species.
• Identifying bio-indicators to assess the potential environmental effects of effluent discharge
in the marine environment.
24
Voisey's Bay Nickel Project
In late July 2002, Voisey's Bay Nickel initiated the site preparation and construction at the mine and
mill/concentrator site in Labrador. In keeping with our commitments to environmental stewardship
and formal agreements governing the project, we put environmental, health and safety
management systems in place to minimize the environmental impacts and ensure permit conditions
are adhered to throughout the construction of the site. www.gov.nf.ca, Inco.com
• Submitted an Environmental Protection Plan, a Historic Resources Management Plan, an

Emergency Response Plan, as well as a Health and Safety Program for the construction site
to the Government of Newfoundland and Labrador.
• Initiated consultation with the Innu Nation and Labrador Inuit Association concerning our
Environmental Effects Monitoring Plan and a Closure Plan before submitting these to federal
and provincial regulators in 2003.
• Implemented systems to ensure the protection of employee and contractor health and
safety at the site including: Occupational Health and Safety Committees, worker orientation
and training, hazard analysis, safety talks, incidence investigation and emergency response
training.
• Logged over 200,000 person hours at the construction site without a lost time injury.
We submitted registration documents to the Government of Canada and the Government of

Newfoundland and Labrador for environmental assessment of the mini-hydrometallurgical plant, to
be built in Mississauga, Ontario, and the demonstration hydrometallurgical plant, to be built at
Argentia, Newfoundland. At the end of 2002, both of these projects were released from further
environmental assessment requirements. Work is expected to start on the mini plant immediately
and construction of the demonstration plant will commence in 2004.
25
Occupational Health
Inco believes that a healthy workplace is a fundamental right of our employees. We are committed
to protecting the health and safety of our workers and to meeting and, when possible, surpassing
the increasingly stringent occupational health requirements in the jurisdictions where we operate.
We continuously evaluate and improve prevention and control programs to protect employee health.
A healthy workplace also makes good business sense. It contributes to better employee morale,
more attentive, safer behaviour and improved productivity, which in turn leads to better product
quality.
In collaboration with our unions, we are continuing to monitor the health status of our employees,
from current and historic operations, comparing health and mortality data to that of reference
populations. These studies are now nearing 40 years of follow-up.
Industrial hygiene is a continuously evolving multidisciplinary applied science that addresses the
recognition, evaluation, prevention and control of work-related hazards and risks. Each operating
facility has the necessary programs in place to facilitate the protection of employee health.
Depending on the regulatory jurisdiction and the nature of the operations, industrial hygiene
programs may include:
• exposure monitoring,
• respirator use,
• hazardous materials control,
• vehicle emission control,
• hearing conservation,
• radiation protection,
• ventilation control,
• vibration,
• heat stress,
• confined space entry,
• asbestos abatement and control,
• ozone depleting substance reduction
• appropriate training.
Sudbury Operations:
• Reviewed the designated substance regulations, the asbestos management and abatement
program, the respirator use program and the hazardous material control program to
determine compliance and establish any necessary action plans.
• Developed a new sampling technique and analytical procedure to meet new regulatory
requirements for determining occupational exposures to nickel and certain nickel
compounds.
Thompson Operations:
• Realized significant reductions of inhalable nickel exposures in the Refinery and Matte
Preparation following a comprehensive aerosol-monitoring program identifying opportunities
for improvement.
26
Clydach Refinery:
• Achieved significant reductions in workplace exposure to particulates through the

introduction of new equipment.
Acton Refinery:
• Continued to operate successful lead and platinum health surveillance programs as well as
workplace monitoring for a range of other metals.
• Enhanced employee fitness through the introduction of a voluntary preventative well-being
program introduced in response to the number of musculoskeletal injuries, the majority of
which were not directly work related. The program focuses on increased use of the refinery
gymnasium, exercise and nutrition.
Health Research
We invest heavily in the field of health research. Our primary interest is to improve the testing,
assessment and understanding of the impact of metal compounds and other relevant substances on
humans and the environmental pathways by which humans are exposed to these substances. Our
research effort is often carried out in partnership with industry, government, labour and
universities.
During 2002, we provided support and participated in leading research programs including:
• The Nickel Development Institute (NiDi) is currently funding scientific research to provide
data for a comprehensive risk assessment of metallic nickel and soluble nickel compounds
being undertaken by the European Union.
• The Nickel Producers Environmental Research Association (NiPERA) research activities in
2002 included:
o Studies on the potential carcinogenicity of ingested nickel sulphate and elemental
nickel.
o Determination of the chemical species of nickel in urban air.
o Factors associated with the occurrence of nickel contact dermatitis.
o Reproductive studies on a large group of women in a Russian nickel refinery.
• The Diesel Emissions Evaluation Program (DEEP) is an industry, labour, government
research consortium to determine sampling and analytical techniques capable of measuring
low levels of diesel particulate matter and to evaluate techniques to control these emissions
to air from diesel equipment working underground. In 2002, work continued on field tests
of particulate filters at our Stobie Mine located in Sudbury, Ontario. While these studies are
not yet completed, the results to date have been so successful that some actions are
already being taken to equip new underground diesel equipment with the preferred filter
systems.
• In 2002, we provided expert advice on a number of multi-stakeholder advisory panels
formed to advise governments about the effects of metals on health, including Health
Canada's Toxic Substances Research Initiative and the Ontario Workplace Safety
and Insurance Board's Occupational Disease Advisory Panel.
27
Safety
Our goal is an injury-free workplace for all of our

employees. Through ongoing programs to evaluate and
minimize operational risks to health and safety in all our
facilities and projects, we continued to make progress
toward that goal in 2002.
Overall safety performance for 2002 improved with an

overall reduction in disabling injury frequency rate (DIF)
to 1.7 per 100 employees compared to 1.8 per 100
employees in 2001. While we achieved a 6 per cent
reduction in DIF for 2002, we did not meet our stated
safety performance target of a 25 per cent reduction in
DIF year over year.
Some of our operations made notable improvements in

their safety performance during the year. The Clydach
and Acton refineries surpassed the corporate target of a
25 per cent reduction in DIF and our Thompson
Operations achieved a reduction of 11 per cent.
Unfortunately, the improvements in safety performance

in 2002 were tragically overshadowed by two employee
fatalities. Mr. Brian Laughlin was fatally injured at the Copper Cliff Nickel Refinery in March 2002
and Mr. Tato Harson was fatally injured at PT Inco in July 2002. These fatalities serve as tragic
reminders that we have to remain vigilant and that safety must remain our number one priority in
all locations at all times. We are carefully reviewing our policies, procedures and practices to
prevent fatalities in the future. We are placing greater emphasis on strong management support,
our health and safety committees, engaging employees through interactive safety audits, training
and safety discussions and recognition of good performance.
• Achieved an impressive safety record of zero disabling injuries at Inco TNC Limited and
Jinco Non-ferrous Metals Co. Ltd.
• Achieved a record of zero lost time injuries over more than 200,000 person hours worked at
the Voisey's Bay Nickel Company's mine and mill/ concentrator construction site.
• Achieved zero lost time accidents at Novamet Specialty Powder Products and received the
2002 Small Company Safety Award from the Metal Powder Producers Association. Over the
past four years, Novamet has experienced only one lost time injury and has received the
aforementioned award three times.
• Received the silver rating award at PT Inco for their performance at the Indonesian Rescue
Challenge for Mining and Oil and Gas companies, hosted by PT Inco in July 2002. PT Inco
was also awarded the silver rating in 2002 for their efforts based on safety management
and statistics.
28
Communities
We strive to enhance the quality of life in the communities in which our employees live and work.
Our updated Environmental, Health and Safety Policy identifies our relationships with the
communities where we operate as among our highest corporate priorities. As part of this
commitment, we actively engage with a wide range of stakeholders to address environmental
health, safety and social responsibility issues stemming from our operations.
In 2002, we continued our long history of consultation and dialogue with our communities and
worked closely with community representatives to identify and support local programs in health
care, education, agriculture, recreation and industrial training.
We place great value on our interactions with many diverse stakeholders in the communities where
we operate. As part of our overall commitment to sustainable development, and to emphasize the
importance of social responsibility across the company, we are preparing a separate social
responsibility report which will highlight our commitments, activities and partnerships in the
communities where we live and work. This report will be available in 2003.
• Established a Public Liaison Committee to discuss environmental issues in Thompson,

Manitoba and met three times during 2002.
• Negotiated Impacts and Benefits Agreements (IBAs) with the Labrador Inuit Association and
the Innu Nation establishing our relationships with our two closest neighbours for our
Voisey's Bay project.
• Formed a Public Advisory Committee of volunteers from the Sudbury, Ontario community
including representatives from two Aboriginal communities. This Committee provides a
forum for public input to the environmental and human health risk assessments currently
underway to address issues related to levels of metals around historical mining, smelting
and refining facilities operated by both Inco and Falconbridge Limited.
Sudbury Operations
Sudbury Soils
Inco is committed to examining the possible adverse effects that may have resulted from our
historical operations. In Sudbury, where our operations have existed for over a century, metal
compounds have been deposited onto surface soils as a result of air emissions during our early
decades of operation. Improvements in dust management practices and technology have
significantly reduced these types of releases from our operations over time.
In September 2001, the Ontario Ministry of the Environment (MOE) issued a report Metals in Soil
and Vegetation in Sudbury Area attributing elevated soil concentrations of nickel, copper, cobalt
and arsenic in the Sudbury area to historical operations of nickel-copper mining and smelting
activities carried out by both Inco and Falconbridge. We are committed to addressing the potential
for harmful effects that may result from our past practices. We are currently supporting and funding
risk assessments for human and environmental health in the Sudbury area and carrying out the soil
sampling necessary to fully determine the extent of airborne deposition of metal-containing
particulates.
29
Assessment Process
We are participating in a multi-stakeholder group that is guiding the assessment process. The group
consists of the City of Greater Sudbury, the Regional Department of Health, the Ministry of
Environment, Falconbridge Limited and Health Canada, which is representing First Nations
communities. This group is guiding the assessment process.
A Public Advisory Committee of ten local citizens, chaired by Mr. Ivan Filion, is providing an avenue
for citizen input into the risk assessment process. There is also a Process Observer, Mr. Franco
Mariotti, whose role is to observe the fairness of the process and the effectiveness of
communication. To date, Mr. Mariotti has released four quarterly reports on the process. The reports
are at www.sudburysoilsstudy.com.
The multi-stakeholder group has defined the scope of the soil studies that are required and a
consortium of environmental consulting firms, with the required expertise, has been selected to
undertake the work. Following completion of the assessments in late 2004 and, should risk
reduction be necessary, a remediation plan would be put in place starting in 2005.
Thompson Operations
The formation of a community-based Public Liaison Committee (PLC) at Thompson provides a new
mechanism for ongoing public outreach on environmental issues associated with Inco's nickel
producing operations in the community.
The PLC was formed in early 2002 to provide an open avenue for public input on environmental
issues that may be of concern to the approximately 15,000 people who live and work in Thompson.
The volunteer PLC, consisting of about a dozen people, meets quarterly. Members represent such
organizations as the Thompson Recycle Centre, the Provincial Department of Conservation, the local
seniors' community, the local education system, the Ma-Mow-We-Tak Friendship Centre, the City of
Thompson, the United Steelworkers of America, the local wildlife association and the medical
community. There are also community members at large as well as several Inco representatives.
Since its inception, the PLC has explored various environmental issues, including:
• the Voluntary Emission Reduction Program.

• challenges associated with Inco's tailing basin.
• Inco's Environmental Effects Monitoring Program.
• reforestation initiatives at our mine sites.
Members have also toured our Thompson Operation including Birchtree Mine and the Birchtree
Effluent Treatment Plant.
Future PLC plans call for a review of the Thompson Soils Study, the impact of the Kyoto Protocol on
our operations and water treatment. Plans for 2003 also include visits to surface processing plants
and a tour of the highly praised SOAB Mine rehabilitation project about 70 kilometers south of
Thompson.
During its first year of operation, the PLC encouraged us to revitalize and increase community
awareness of our environmental hotline for the community of Thompson. We responded by
revitalizing our telephone hotline to ensure residents can reach "a real live person" 24 hours a day,
seven days a week. It is a well-publicized and clearly defined mechanism for contacting our
Thompson operations, should the public have environmental concerns.
30
Port Colborne Refinery
Inco has taken responsibility for elevated levels of nickel, copper, cobalt and arsenic in the surface
soils of Port Colborne as a result of historic airborne emissions from our nickel refinery during its
operation from 1918 to 1984. In 2002, work continued on the Inco-funded Community Based Risk
Assessment (CBRA) to assess whether the levels of metals in Port Colborne soils pose
environmental and/or human health risks. The CBRA process will determine safe levels for nickel,
copper, cobalt and arsenic in the specific soil types that occur in the Port Colborne area. Following
completion of the assessments, we will commence remediation of soils as needed according to the
findings of the assessments. The technical aspects of the CBRA are being guided by a multi-
stakeholder group including Inco, the City of Port Colborne, the Ontario Ministry of the Environment
(MOE) and the Niagara Public Health Department. Public input into the CBRA process is provided for
by a Public Liaison Committee, which was specifically appointed by the Port Colborne City Council.
In addition to the CBRA studies, Inco has also agreed to fully fund an independent health study of
Port Colborne residents known as the Community Health Assessment Project (CHAP). The study,
conducted by Ventana Clinical Research Corporation, will help to identify if there are any indicators
that may signal health concerns related to exposure to soil containing nickel, copper, cobalt and
arsenic among Port Colborne residents. The scope of work has been reviewed by all parties, as well
as by an independent committee of experts and independent ethics review board. The work began
in December 2002 and the health study is scheduled for completion by the end of 2003.
Rodney Street
In addition to our work with the CBRA and CHAP, we have also been proactive in addressing
concerns of residents of the Rodney Street area that is adjacent to the refinery.
In 2001-2002, the Ontario Ministry of the Environment (MOE) identified that 25 of approximately
179 properties studied by them in this area contain concentrations of nickel that, in the most recent
Ministry human health risk assessment, exceeded an intervention level established by the MOE in
March 2002 of 8,000 parts per million (ppm) nickel.
In April 2001, the company announced a voluntary program to remediate all the properties in the
Rodney Street area identified by the MOE as having levels of nickel and certain other metals above
the intervention level and to conduct indoor air and dust sampling.
The offer stated that the clean-up would be done entirely at Inco’s expense, by professional
independent consultants, at no cost to homeowners. Remediation would include a detailed survey
and plan development for each property followed by removal and replacement of soil to a depth of
30 centimetres.
It was also made clear that, by accepting this offer, property owners did not waive their right to
further claims against Inco in the future.
By the end of 2002, we have been allowed to remediate five of the properties whose owners have
accepted its voluntary program. The owners of 19 of the remaining properties having nickel levels
above the 8,000 ppm intervention level are represented by the same counsel that represents the
plaintiff in a class action filed against Inco and several other parties. These remaining property
owners have chosen not to accept Inco’s voluntary remediation and sampling program.
31
PT Inco
Community Development Program
Building on our 35-year history of community development at our PT Inco operations in Indonesia,
we continued to contribute and partner with our stakeholders to further the development of key
community projects throughout 2002. In consultation with community leaders and government
representatives, we identified and developed a wide range of projects to address the immediate
needs of the community over a range of issues including:
• Supporting education and training in the community,

• Encouraging the local agrarian economy,
• Providing community and business training, and
• Enhancing and further developing infrastructure.
Community projects were carried out in Sorowako, Towuti, Wilayah, Malili and Proyeh Proyeh and
the regions of southeast Sulewesi and central Sulawesi. The community plans for 2003 will build
upon the accomplishments of 2002 with full input from the communities.
Education and Training
• Enhanced our community development program by providing employment opportunities for

over 370 Indonesian co-op and intern students in our mine and processing facilities.
• Sponsored additional training programs, including mechanics and welding, at other
locations in the region.
• Provided four higher education scholarships for students living in Nuha, Towuti and Malili.
• Sponsored a program to assist local communities by providing honorarium assistance for
596 voluntary teachers in remote areas.
• Constructed, repaired and upgraded school facilities and education centers, as well as
subsidizing bus transportation for those students living in the far reaches of the region.
Agriculture
• Initiated agricultural projects that provided seed, fertilizer and hand tractors to local
farming communities and assisted in improving irrigation capabilities for local farmers.
• Provided financial support to the agricultural school at Haluulea University at Kendari.
Infrastructure Support
• Funded the construction of potable water distribution, the maintenance of street lighting
and supported waste collection in the communities of Sorowako, Waeondula and
Wasupanda.
• Continue to provide 5 MW of power to communities from its hydroelectric facilities and fund
the expansion of the electricity grid to rural areas.
• Provided support to local businesses, including training courses and tools to improve their
buildings and infrastructure.
32
PT Inco Hospital
PT Inco has been providing medical services to our employees in the Sorowako region since we
began our Indonesian operations in 1967. The hospital program includes community and regional
medical programs and presently employs five doctors and 52 nurses. In addition, arrangements
have been made with Hasanuddin University, Ujang Pandang, to supply specialists who visit the PT
Inco hospital on a regular basis.
The hospital provides medical services to both Inco employees and their dependents as well as to
other members of the public. In 2002 there were approximately 6,800 visits per month by Inco
employees and their dependents, and an additional 2,600 visits per month by residents not
associated with Inco. During the same period, the hospital utilization rate for patients staying over
night was 95 persons per month for employees and dependents and 155 persons per month for
non-employees. The pharmacy at the hospital dispenses approximately 400 prescriptions per day.
As part of our community outreach, there are comprehensive programs focusing on the health of
mothers and newborn babies, and also the prevention of diseases such as hepatitis and diphtheria.
A preventative medicine program focuses on distributing newsletters and bulletins to communities,
providing information on a number of community health topics.
Our focus for 2002 has been on developing prevention programs for contagious diseases and the
promotion of health within the community. A special effort has been made to improve the health of
children and youth. PT Inco, with the Government of Indonesia, also supports and coordinates this
effort at the regional health clinics. As part of the disease prevention program, spraying for
mosquitoes is undertaken at Sorowako and the surrounding communities. The focus of this program
is the prevention of malaria and dengue fever, two endemic diseases in central and southern
Sulawesi.
Goro Nickel Project
The Goro Nickel project is a key part of our profitable growth strategy. Currently, the full-scale
project is under review due to significantly increased costs over earlier estimates. Startup will be
delayed until at least the end of 2005 or early 2006.
Communication and consultation with the population of New Caledonia is an important aspect of the
Goro Nickel project. Since August 2001, seven meetings of the Commission Minières have been held
to review the Goro Nickel project. This Commission is chaired by the mayors of communities
affected by the project and involves the Grand Chiefs and members of the local Melanesian tribes,
government officials, local expert groups and concerned citizens. At each meeting, the Grand Chiefs
of the south province have granted the consent of their tribes to proceed with specific construction
activities. These meetings enable the local population to express their views and concerns related to
the project and ensure that the construction at Goro is executed in accordance with strict
environmental standards.
In addition, over 700 residents have visited the Goro Nickel pilot plant site and more than 25 face-
to-face meetings have been held in various local communities to discuss the project, the
environmental protection measures taken and the opportunities that will be provided by the full-
scale facility for job creation and economic development.
33
Voisey's Bay Nickel Project
The Voisey's Bay project involves the development of a mine and concentrator in Labrador and a
concentrate processing facility at Argentia, Newfoundland. Through Voisey's Bay Nickel Company
(VBNC), we are committed to ensuring that the extensive social and economic benefits that will be
realized from this project will benefit the people of Newfoundland and Labrador.
We are striving to develop and maintain ongoing, effective partnerships with individuals, businesses
and communities in Newfoundland and Labrador. In Labrador, first priority for employment
opportunities is given to qualified residents located in communities adjacent to the mine and
concentrator operation at Voisey's Bay.
In 2002, separate Impacts and Benefits Agreements (IBAs) were signed with the Labrador Inuit
Association and the Innu Nation. The IBAs provide for both Innu and Inuit environmental monitors
at the Voisey's Bay site. During the 2002 construction season, these monitors operated together
with VBNC, construction company and engineering consultant personnel as an integrated
environmental, health and safety monitoring team. As a result, there were no lost time accidents
and no major environmental incidents during this period. At the end of the construction season, we
held a workshop for all the monitors to review our successes and challenges and plan for better
performance in 2003.
All permit applications and environmental-related plans prepared by VBNC for the project are
reviewed by an Environmental Management Board (EMB) composed of two representatives from
each of the Innu Nation, Labrador Inuit Association, the Government of Newfoundland and Labrador
and the Government of Canada.
34
Performance Profiles
We are committed to practicing sustainable development - the integration of economic, social and
environmental considerations in all our activities. We are engaging our employees throughout the
organization to achieve this challenging goal. Our employees play a critical role in:
• achieving continuous improvement in environmental performance;

• developing good community relationships by engaging the community in our activities; and
• continuing to reduce the costs of production.
Employee innovations and team efforts contribute to a wide-range of achievements in many areas
of the company. These ‘Performance Profiles’ highlight a few recent achievements in environmental
areas.
Examples of just a few of the achievements resulting from employee innovations and team efforts
include:
• Reducing particulate emission at PT Inco

• Supporting our patented SO2 /AIR process worldwide
• Extracting metal naturally from soils using garden variety plants
• Reducing nitrogen oxide emissions at Acton
We also highly value the input and feedback from external stakeholders about our environmental,
health and safety, and social effort. It was input from local New Caledonia residents that contributed
to:
• Designing environmental studies and tailings disposal to protect coral reef at Goro.
Reducing Particulate Emissions
"We have achieved impressive reductions in dust [particulate] emissions over the past two years",
says Bill King, Maintenance Specialist, PT Inco. While pleased with the results, Bill states, "More
work needs to be done to reach acceptable performance levels".
The dryers are the largest source of particulate emissions and a new electrostatic precipitator
installed on one of three dryers delivered a 95 per cent reduction in particulate emissions in 2002.
"We are confident that the technology is there, but we need to improve it and ensure it works
consistently before we can install it on the other two dryers", indicates Jim Gowans, Vice-President,
Operations and Chief Operating Officer at PT Inco.
To further reduce emissions, a scrubbing system for exhaust gases was upgraded on one of three
kilns, producing a 50 per cent reduction in particulate emissions from that kiln. Jim Gowans
indicates that these improvements will now be applied to two other kilns. Jim also wants to raise the
level of commitment towards environmental compliance at PT Inco.
Bill King - already dedicated to continuing environmental improvements - feels that "with the
commitment of operations, maintenance and management, we'll be able to put in place the
systems, policies and procedures and foster the employee willingness that is essential to achieving
our goals".
35
Effluent Treatment
Anna Malevich is a process engineer with Inco Technical Services' cyanide destruction group at our
Sheridan Park Research Facility located in Mississauga, Ontario. She provides process design, basic
engineering, plant start-up and trouble-shooting support for Inco's patented cyanide destruction
process.
Inco's SO2 /AIR process uses sulphur dioxide and air, with a catalyst of copper sulphate, to cost-
effectively destroy cyanide in effluents from gold leaching plants. Cyanide is essential to modern
gold mining operations. The cyanide, which cannot be recycled for use in the plant needs to be
neutralized before release to the environment. While we developed this technology for our own use,
we have sold the technology to many other mining companies and it forms an important part of
their environmental prevention technology.
A graduate chemical engineer from the University of Toronto, Anna notes, "Use of the process
allows gold mining companies to demonstrate environmental stewardship and also to realize
important metallurgical benefits. The clean effluent protects groundwater, fish and migratory birds."
Anna supports engineering and mining companies worldwide and travels to remote plant sites to
review operating data and ensure that the SO2/AIR systems we have installed continue to operate
effectively.
Phytomining
A small plant, alyssum, could turn farmers into miners through its ability to absorb metals such as
nickel and cobalt into its leaves and stems. Perhaps this sounds strange, but research led by Dr.
Bruce Conard, Vice-President, Environmental and Health Sciences, suggested that it could be an
economic proposition. "Based on research to date, it is not that wild an idea, and Inco is one of the
leaders in this area of technology." says Bruce.
Bruce has been championing Inco's research in the use of these plants to absorb metals such as
nickel, cobalt, zinc, cadmium and gold. Recovering metals from soil using vegetation is called
phytoextraction. There are two applications of phytoextraction:
• Phytoremediation - extracting non-naturally occurring metal from contaminated soils, and

• Phytomining - extracting naturally occurring metals from soil.
Some plants, like alyssum, 'hyperaccumulate' metals. They can absorb up to 2.5 per cent of their
dry weight as metal. Once the plants have absorbed the metal, they can be baled and harvested,
like hay, and then burned in an incinerator. The metal content of the resulting ash is superior to
commercial mined ore and the metal in the ash can be recovered using conventional metal
processing technology. The heat created by burning the alyssum can also be used to generate
power.
We have been experimenting with alyssum crops with Viridian Resources LLC of Houston, Texas.
The advantages of phytoextraction include the ability to mine otherwise uneconomic ore bodies, or
soils containing high levels of minerals, with minimal effect on the environment.
Currently our plans call for testing the growing process in Indonesia and experimenting with
different varieties of alyssum. Farmers in Indonesia may be able to plant and harvest alyssum on
land naturally rich in nickel. As the soil is many metres deep, "nickel farming" could continue for
centuries.
36
N0x Reductions
Inco's Acton Refinery generates nitrogen oxide (NOx) emissions from some of its chemical
operations. These NOx emissions are largely removed by passing exhaust gases through tall gas
washing towers known as scrubbers. Sensitive monitoring equipment continuously records the
levels of NOx released to air.
Although NOx levels were in compliance with permitted levels, our Environmental, Health and Safety
Policy is to surpass environmental requirements where possible. As Jeff Levison, Environmental,
Health and Safety Manager, says, "it's easier to think creatively when you don't have a regulator
breathing down your neck. In this case, self-motivation to understand the chemistry kept us on
track. It also showed the value of hanging on to all those old chemistry books."
Our Acton plant assembled a team to look at ways of further reducing emissions. The team focused
on finding the root cause of NOx generation from each source by examining the detailed chemistry.
They found that process changes to reduce emissions would be less costly than improving the 'end
of the pipe' scrubber efficiency. Process changes included reagent substitutions, careful control of
reaction conditions and a small, dedicated scrubber on one operation that traps NOx as nitric acid for
recycling.
Thanks to a significant team effort, these improvements were achieved at minimal cost, led to a
dramatic reduction in NOx entering the exhaust scrubbers and a 75 per cent reduction in NOx
emissions to air.
37
Protecting Coral Reef
New Caledonia boasts the world's second largest coral reef after the Great Barrier Reef in Australia.
Approximately 1,600 kilometres long, the reef can be as close as a few kilometers from the coast
and as far as 65 kilometers - with an average ocean depth of 40 metres. Reefs serve as homes to
abundant and diversified marine communities.
In surveys conducted in New Caledonia to identify the public's view of the Goro Nickel project,
protection of the coral reefs was raised as a key concern. "Clearly, we need to make sure we design,
build and operate our plant in a way that is very sensitive to the reef and does not in any way
compromise this precious asset," says Bill Napier, Vice-President, Environment, Health and Safety.
Between 1994 and 2000, we conducted studies of existing conditions in the bays, estuaries and
channels near the proposed mine development to determine the existing conditions of the coral
reefs and marine habitat. Data were collected for the following areas:
• Physical oceanography
• Seawater chemistry
• Sediment quality
• Biological oceanography
• Fish chemical profiles
• Humpback whales
• Coral reefs and associated fish
To protect the coral reefs and the diverse community of marine fish and other marine species living
along them in the Baie de Prony and Baie Kwe, we have designed a discharge diffuser system that
will release treated effluents deep into the Canal de la Havannah.
The reef studies were critical in assisting with the development of a design that affords maximum
protection to this resource. "These studies have given us a very complete baseline picture to
measure against as we monitor the reef ecosystem down the road," Bill says.
38
Glossary
Batch plant: A facility in which raw materials are loaded, the process is initiated and the products
are removed after the reactions are completed. This differs from facilities in which raw materials are
fed and products removed on a continuous basis.
Carcinogenic: A substance that has the potential to cause cancer.
Catalyst: A substance that accelerates a reaction and that is recovered substantially unchanged at
the end of a reaction.
Concentrator: A milling plant that produces a concentrate of valuable minerals or metals from ore.
Electrostatic precipitator: An emission control device that utilizes electrical charge to remove
dust from a waste gas flow.
Emissions: Residue material released into the atmosphere by way of steam or smoke discharged
from operations.
Exceedences: Values that go beyond government regulated limits and/or company targets.
Geosynthetic: Synthetic materials that simulate the properties of natural geological deposits such
as clay, etc.
Geotechnical: The application of engineering principles to the study and modification of rocks and
soils.
Greenhouse gas (GHG): A gas that allows light from the sun to heat earth, but that prevents loss
of the heat from the Earth's atmosphere into space.
Groundwater: Water held underground in the soil or in pores or crevices in rock.
Hectare: A measure of surface area equal to 10,000 square metres (equivalent to 2.47 acres).
Hydrometallurgy: An industrial process that uses chemicals to extract metals from minerals.
Intensity: The ratio of a quantity of energy or material needed or produced per unit of production.
Joule: A unit of energy equivalent to the force of one Newton through a distance of one metre.
(One megajoule = 1 million joules. One gigajoule = 1 x 109 joules. One terajoule = 1 x 1012 joules.
A kilowatt hour electrical energy = 3.6 megajoules.)
Kiln: A large furnace for roasting ore concentrate.
Laterite ore: A reddish clay mineral that contains a concentration of nickel oxide minerals and from
which the silica has been naturally leached.
Matte: A product of a smelter, containing metal and some sulphur which must be refined further to
obtain pure metal.
Musculoskeletal: Relating to or involving both muscles and skeleton of the body.
39
Particulate: Finely divided solid or liquid particles in gaseous emissions from various areas of a
mining, smelting, concentrating or refining operation, including chemical droplets, dust mists, fogs,
fumes and smoke.
pH: An expression of acidity or alkalinity on a logarithmic scale on which 7 is neutral, lower values
are more acid and higher values are more alkaline.
Phytoextraction: Recovering metals from soil using vegetation.
Phytomining: Extracting naturally occurring metals from soils, by utilizing the uptake of metals by
vegetation.
Phytoremediation: Extracting non-naturally occurring metal from contaminated soil using

vegetation.
Pilot plant: A small scale facility used to test the technical and economic feasibility of new
processes and technologies prior to construction of a full-scale facility.
Polychlorinated Biphenyls (PCBs): PCBs are mixtures of synthetic chemical compounds

consisting of chlorine, carbon and hydrogen. PCBs are used in electrical equipment, heat
exchangers, hydraulic systems and other applications up to the late 1970s. Because they are
persistent in the environment and living tissue, they are no longer manufactured and can only be
used in equipment that originally contained PCBs until the end of that equipment's service life. Most
jurisdictions are now requiring PCBs in service and in storage to be destroyed by specific dates.
Pug mill: A machine in which materials are mixed, blended or kneaded into a desired consistency.
Retention pond: A pond used to store effluents to provide time for solids to settle or prior to
sending for treatment before release to natural water bodies.
Slag: The waste product of the process of smelting.
Sludge: Precipitated solid matter produced by metallurgical processes.
Surge pond: A pond used to store overflow of effluents resulting from process upsets or weather
events such as spring runoff, storms, etc. Such ponds are generally used to prevent the release of
untreated effluents into natural water bodies.
Tailings: The residue from ore processing that usually has the consistency of sand.
Tonne: A unit of mass equal to one thousand kilograms.
Toxicity: A measure of the ability of a particular chemical or effluent to cause death or impairment
to an animal or plant. There are many toxicity tests in use for different organisms.
Troy ounce: One troy ounce = 31.1035 grams. Troy weight is a system of weights used for
precious metals.
Waste rock: Rock or mineral which must be removed from a mine that has no commercial value.
40
Contact Us
We value your comments and input on the content and format of the 2002 Environmental, Health
and Safety Report.
You can also send us your feedback by e-mail at environment@inco.com, by fax at

(416) 361-7864 or by mail to:
William Napier
Vice-President,
Environment and Health
Inco Limited
145 King Street West, Suite 1500
Toronto, Canada
M5H 4B7
Phone: (416) 361-7678

Facsimile: (416) 361-7864
For all other inquires visit Inco.com.
41

2002 Environmental Report

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2002 Environmental Report

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Inco is one of the world's premier mining and metals companies.

We are committed to promoting sustainable development in all our

Performance Scorecard ............................................................................. 1

Message to Stakeholders ....................................................................... 3

Health, Safety & Environmental Management Systems .......................... 6

Audit Program ........................................................................................... 6

Product Stewardship ................................................................................. 8

Recycling Nickel and Other Metals ........................................................................... 9

Waste Management and Waste Diversion................................................................10

Environmental Performance ................................................................ 11

Energy Use and Conservation.................................................................. 13

Air Quality ............................................................................................... 14

Carbon Dioxide and the Kyoto Protocol ...................................................................14

Sulphur Dioxide ......................................................................................................15

Ground Level Concentrations of SO2 ........................................................................16

Particulates and Metals ..........................................................................................17

Water Quality .........................................................................................................19

Land Use ................................................................................................. 20

Land Reclamation ...................................................................................................20

Environmental Research ......................................................................... 22

Development Projects ............................................................................. 23

Goro Nickel Project.................................................................................................23

Voisey's Bay Nickel Project .....................................................................................25

Occupational Health ............................................................................ 26

Sudbury Operations ................................................................................ 29

Thompson Operations ............................................................................. 30

Port Colborne Refinery ............................................................................ 31

PT Inco Hospital .....................................................................................................33

Goro Nickel Project ................................................................................. 33

Voisey's Bay Nickel Project ..................................................................... 34

Performance Profiles ........................................................................... 35

Reducing Particulate Emissions............................................................... 35

Effluent Treatment .................................................................................. 36

N0x Reductions ....................................................................................... 37

Protecting Coral Reef .............................................................................. 38

Performance highlights for 2002 include:

• Reduced particulate emissions significantly from PT Inco in Indonesia.

2002 Major Objectives

• Achieve an additional 25 per cent reduction in disabling injury rate.

Environment and Health

• Roll out updated Environmental, Health and Safety Policy.

A Safe and Healthy Workplace

Making Good Progress

Addressing Future Challenges

2002 Performance Highlights:

Auditing Our Environment, Health and Safety Performance

2002 Performance Highlights

In 2002, nine Inco facilities were audited.

• Update facility action plan status

• Product stewardship supports our corporate social responsibility commitments, assists in

Product stewardship is important for our

Inco product stewardship includes eight

• proper hazard identification of our

In addition, we collaborate with other

Recycling of Nickel-Containing Stainless Steel

High Temperature Metals Recovery at Inmetco

Recycling Precious Metals at the Acton Refinery

2002 Performance Highlights

Fines and Penalties

Employee involvement, ideas and commitment have

We are redoubling our efforts to further decrease our

2002 Performance Highlights

Carbon Dioxide and the Kyoto Protocol