In '000 tonnes

Nickel - Production increased in the December 2011 quarter with the Line 1 furnace at Cerro Matoso (Colombia) operating at full production rates following its successful replacement in the prior quarter. In addition, higher nickel in matte production at the Nickel West Kalgoorlie smelter (Australia) compensated for a decline in metal production at the Nickel West Kwinana refinery that resulted from a planned outage at a third party hydrogen supplier. Nickel West Kwinana is expected to commission its new hydrogen plant in the March 2012 quarter.

The Nickel West Mt Keith Talc Redesign Project, which enables the processing of talc bearing ore, was successfully commissioned in December 2011.

Nickel West operating margins remains sensitive to persistent weakness in nickel prices and the continued strength of the Australian dollar.