FalconbridgeFalconbridgeA nickel copper companyA nickel copper company

2

AgendaAgenda

Overview

Overview

Market OutlookMarket Outlook

StrategyStrategy

3

Investment HighlightsInvestment Highlights

World-class nickel and copper assets

Positive outlook– Nickel: best fundamentals

– Copper: mid-term improvement

Low-cost producer

Track record of delivering results

Financial flexibility to weather the downturns

World-class nickel and copper assets

Positive outlook– Nickel: best fundamentals

– Copper: mid-term improvement

Low-cost producer

Track record of delivering results

Financial flexibility to weather the downturns

4

Falconbridge At A GlanceFalconbridge At A Glance

Founded in 1928

74-year history in mining Nickel and Copper– 3rd largest Nickel producer in the world

– 12th largest Copper producer in the world

One of the largest metal recyclers and processors

2001 sales C$2.1 B and C$5.1 B assets

Market capitalization of C$2.7 B

59.6%-owned by Noranda Inc.

Founded in 1928

74-year history in mining Nickel and Copper– 3rd largest Nickel producer in the world

– 12th largest Copper producer in the world

One of the largest metal recyclers and processors

2001 sales C$2.1 B and C$5.1 B assets

Market capitalization of C$2.7 B

59.6%-owned by Noranda Inc.

5

Falconbridge = Nickel + CopperFalconbridge = Nickel + Copper

KoniamboDevelopment

(Nickel)

KoniamboDevelopment

(Nickel)

Collahuasi(Copper)

Collahuasi(Copper)

Lomas Bayas(Copper)

Lomas Bayas(Copper)

Falcondo(Ferronickel)

Falcondo(Ferronickel)

Kidd Creek(Copper)

Kidd Creek(Copper)

INO Sudbury(Nickel)

INO Sudbury(Nickel)

INO Nikkelverk(Nickel)

INO Nikkelverk(Nickel)

INO Raglan(Nickel)

INO Raglan(Nickel)

6

Nickel and Copper > 80%Nickel and Copper > 80%

Nickel40%

Nickel40% Copper

42%Copper

42%

Zinc 7%Zinc 7%Cobalt

4%Cobalt

4%

PGMs7%

PGMs7%

2002 Revenues2002 Revenues

7

AgendaAgenda

Overview

Overview

Market OutlookMarket Outlook

StrategyStrategy

8

Stainless Steel Output GrowingStainless Steel Output Growing

4-5M tonnes capacity is planned for 2002-2004

4-5M tonnes capacity is planned for 2002-2004

+11.5%

+4.5%+5.4%

2002 2003 2004

+11.5%

+4.5%+5.4%

2002 2003 2004

Stainless Steel Production Increase

Stainless Steel Production Increase

N I C K E L – B E S T F U N D A M E N T A L S O F B A S E M E T A L SN I C K E L – B E S T F U N D A M E N T A L S O F B A S E M E T A L S

9

Shortage of Scrap = Increased Use of NickelShortage of Scrap = Increased Use of Nickel

Structural change in scrap availability

– CIS exports down

– Tight industrial scrap

– As stainless steel capacity increases, more primary is used

1% decline = 12,000 tonnes nickel required

Structural change in scrap availability

– CIS exports down

– Tight industrial scrap

– As stainless steel capacity increases, more primary is used

1% decline = 12,000 tonnes nickel required

30%

40%

50%

60%

90 92 94 96 98 00 02F

30%

40%

50%

60%

90 92 94 96 98 00 02F

Scrap Ratio DecliningScrap Ratio Declining

N I C K E L – B E S T F U N D A M E N T A L S O F B A S E M E T A L SN I C K E L – B E S T F U N D A M E N T A L S O F B A S E M E T A L S

10

Chinese Consumption Now A Major FactorChinese Consumption Now A Major Factor

Chinese consumption growing ~7% annually

2002 est. 91,000 tonnes

Major uses - stainless steel, plating & batteries

Chinese consumption growing ~7% annually

2002 est. 91,000 tonnes

Major uses - stainless steel, plating & batteries

Chinese ConsumptionChinese Consumption

(‘000 MT)(‘000 MT)

0

20

40

60

80

100

120

90 92 94 96 98 00 02F0

20

40

60

80

100

120

90 92 94 96 98 00 02F

ProductionProduction

ConsumptionConsumption

N I C K E L – B E S T F U N D A M E N T A L S O F B A S E M E T A L SN I C K E L – B E S T F U N D A M E N T A L S O F B A S E M E T A L S

11

Low InventoriesLow Inventories

N I C K E L – B E S T F U N D A M E N T A L S O F B A S E M E T A L SN I C K E L – B E S T F U N D A M E N T A L S O F B A S E M E T A L S

0

50

100

150

200

250

91Q

1

92Q

1

93Q

1

94Q

1

95Q

1

96Q

1

97Q

1

98Q

1

99Q

1

00Q

1

01Q

1

02Q

1

03Q

1

Sto

cks

('00

0 to

nn

es)

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

Nic

kel

Pri

ce (

US

$/lb

)

WW Producer Stocks LME Stocks

CIS Producer Stocks Nickel Price

12

Demand to Exceed SupplyDemand to Exceed Supply

Supply growth (%)Supply growth (%) +5.1%+5.1% +3.5%+3.5% +2.3%+2.3%

World supplyWorld supply 1,1501,150 1,1901,190 1,2171,217

Demand growth (%)Demand growth (%) +2.0%+2.0% +5.4%+5.4% +3.9%+3.9%

World demandWorld demand 1,1291,129 1,1901,190 1,2361,236

BalanceBalance +21+21 00 -19-19

Total stocks*Total stocks* 143143 146146 127127As weeks of consumptionAs weeks of consumption 6.66.6 6.46.4 5.35.3

20012001 20022002 20032003

(‘000 MT)(‘000 MT)

* LME, Producer, Russian Off-Warrant, Merchant* LME, Producer, Russian Off-Warrant, Merchant

N I C K E L – B E S T F U N D A M E N T A L S O F B A S E M E T A L SN I C K E L – B E S T F U N D A M E N T A L S O F B A S E M E T A L S

13

Chinese Demand StrongChinese Demand Strong

China is a significant net importer

Chinese copper demand has grown at rate of 10% over past 15 years

Asia now consumes 40% of total demand

China is a significant net importer

Chinese copper demand has grown at rate of 10% over past 15 years

Asia now consumes 40% of total demand

ChinaChina

TaiwanTaiwan

JapanJapan

S. KoreaS. Korea

CuCu

C O P P E R – F U N D A M E N T A L S I M P R O V I N GC O P P E R – F U N D A M E N T A L S I M P R O V I N G

14

Slow Supply GrowthSlow Supply Growth

Declining ore grades will reduce production at a number of mines

Capital spending will largely maintain production

Greenfield projects are limited over next 5 years

World needs 500,000 tonnes a year of new capacity to meet 3% growth rate

Declining ore grades will reduce production at a number of mines

Capital spending will largely maintain production

Greenfield projects are limited over next 5 years

World needs 500,000 tonnes a year of new capacity to meet 3% growth rate

C O P P E R – F U N D A M E N T A L S I M P R O V I N GC O P P E R – F U N D A M E N T A L S I M P R O V I N G

15

Cu Stocks Are High But Lower Than 1982Cu Stocks Are High But Lower Than 1982

8.0

3.2

4.33.9

7.2 7.3

6.2

0.0

2.0

4.0

6.0

8.0

10.0

1982 1986 1993 1998 2001 2002 2003f

8.0

3.2

4.33.9

7.2 7.3

6.2

0.0

2.0

4.0

6.0

8.0

10.0

1982 1986 1993 1998 2001 2002 2003f

C O P P E R – F U N D A M E N T A L S I M P R O V I N GC O P P E R – F U N D A M E N T A L S I M P R O V I N G

16

Copper Market BalanceCopper Market Balance

C O P P E R – F U N D A M E N T A L S I M P R O V I N GC O P P E R – F U N D A M E N T A L S I M P R O V I N G

Supply growth (%)Supply growth (%) +5.0%+5.0% -6.4%-6.4% +1.6%+1.6%

World supplyWorld supply 12,58712,587 11,78311,783 11,96911,969

Demand growth (%)Demand growth (%) -7.2%-7.2% -0.2%-0.2% +3.5%+3.5%

World demandWorld demand 11,77711,777 11,75711,757 12,16812,168

BalanceBalance +810+810 +26+26 -199-199

Total stocks*Total stocks* 1,6211,621 1,6471,647 1,4481,448As weeks of consumptionAs weeks of consumption 7.27.2 7.37.3 6.26.2

20012001 20022002 20032003

(‘000 MT)(‘000 MT)

* LME, Comex, Shanghai, Producer, Consumer, Merchant* LME, Comex, Shanghai, Producer, Consumer, Merchant

17

AgendaAgenda

StrategyStrategy

OverviewOverview

Market OutlookMarket Outlook

18

Strategy Going ForwardStrategy Going Forward

Maximize potential of existing operationsMaximize potential of existing operations

Grow nickel and copper businesses profitablyGrow nickel and copper businesses profitably

Ensure a strong financial positionEnsure a strong financial position

Grow nickel and copper businesses profitablyGrow nickel and copper businesses profitably

Ensure a strong financial positionEnsure a strong financial position

19

Nickel OperationsNickel Operations

INO Sudbury

INO Raglan INO Nikkelverk

Falcondo

20

Nickel Production – To IncreaseNickel Production – To Increase

72

27

0

20

40

60

80

100

120

1995 1996 1997 1998 1999 2000 2001 2002 2003

INO Falcondo

72

27

0

20

40

60

80

100

120

1995 1996 1997 1998 1999 2000 2001 2002 2003

INO Falcondo

(‘000 Tonnes)(‘000 Tonnes) 2001-2002 were impacted by the strike

2001-2002 were impacted by the strike

21

Competitive Cost PositionCompetitive Cost Position

$1.52

$1.80 $1.81

2001 1H/ 02 Industry Average

$1.52

$1.80 $1.81

2001 1H/ 02 Industry Average

(US$/lb.) (US$/lb.)

Falcondo – swing producer – cost US$2.15 @ $20 oilFalcondo – swing producer – cost US$2.15 @ $20 oil

INO Cash CostsINO Cash Costs

22

Montcalm Increases Our ProductionMontcalm Increases Our Production

Bankable feasibility in early 2003

Additional drilling to further define ore body

Annual production 8,000 tonnes/year

Ore to be trucked to Kidd Creek for milling

– nickel concentrate to Sudbury

Bankable feasibility in early 2003

Additional drilling to further define ore body

Annual production 8,000 tonnes/year

Ore to be trucked to Kidd Creek for milling

– nickel concentrate to Sudbury

23

Sudbury Exploration – Track Record of SuccessSudbury Exploration – Track Record of Success

Exploration found 85 M mt ~1.75% Ni equivalent

Exploration cost = 10 cents Cdn./pound

Exploration found 85 M mt ~1.75% Ni equivalent

Exploration cost = 10 cents Cdn./pound

1960-20011960-2001

24

Sudbury Exploration ProgramSudbury Exploration Program

Work continues on Nickel Rim South– Identified resources of 4.6 M MT

of 2.2% Ni and 4.9% Cu

– Six drills operating

Fraser Morgan– Could increase total reserves in

Sudbury by 25%

Work continues on Nickel Rim South– Identified resources of 4.6 M MT

of 2.2% Ni and 4.9% Cu

– Six drills operating

Fraser Morgan– Could increase total reserves in

Sudbury by 25%

Sudbury Basin – still great potentialSudbury Basin – still great potential

25

27 26 27 24

24 25 2825

16 2120 26

86

0

15

30

45

60

75

90

2002 2003 2004 2005

Sudbury Raglan Custom Feed Montcalm

27 26 27 24

24 25 2825

16 2120 26

86

0

15

30

45

60

75

90

2002 2003 2004 2005

Sudbury Raglan Custom Feed Montcalm

(‘000 MT)(‘000 MT)

Maximizing Nikkelverk RefineryMaximizing Nikkelverk Refinery

Capacity: 85,000 tonnesCapacity: 85,000 tonnes

26

Major Copper OperationsMajor Copper Operations

Lomas Bayas

Collahuasi

Kidd Creek

27

Copper Production > 300,000 TonnesCopper Production > 300,000 Tonnes

0

50

100

150

200

250

300

350

2000 2001 2002 2003 2004

Collahuasi Kidd Creek INO Lomas Bayas

0

50

100

150

200

250

300

350

2000 2001 2002 2003 2004

Collahuasi Kidd Creek INO Lomas Bayas

(‘000 MT)(‘000 MT)

28

Low-Cost Copper ProducerLow-Cost Copper Producer

$0.49$0.43 $0.41

2001 Q3/02 2001

$0.49$0.43 $0.41

2001 Q3/02 2001

Industry AverageIndustry AverageFalconbridgeFalconbridge

(US$/lb.) (US$/lb.)

Cash Costs 14% Below IndustryCash Costs 14% Below Industry

29

Kidd Creek – Positioning for Long TermKidd Creek – Positioning for Long Term

Status

FL and Noranda smelters brought together to unlock value

New contract with production and maintenance workers October 1

Outlook

Mine D continues to be on schedule and on budget

Extends life to 2024

Status

FL and Noranda smelters brought together to unlock value

New contract with production and maintenance workers October 1

Outlook

Mine D continues to be on schedule and on budget

Extends life to 2024

30

Collahuasi – Operating WellCollahuasi – Operating Well

Status

Running above capacity

Q3/02 cash costs US$0.38/lb.

Outlook

Transition to Rosario 35% complete

Remains on schedule

Mill expansion will maintain production level

Status

Running above capacity

Q3/02 cash costs US$0.38/lb.

Outlook

Transition to Rosario 35% complete

Remains on schedule

Mill expansion will maintain production level

Milling Capacity(’000s tonnes/day)

Milling Capacity(’000s tonnes/day)

70

110

Current Expansion

70

110

Current Expansion

31

Lomas Bayas – Performing WellLomas Bayas – Performing Well

Status Cash costs Q3/02 US$0.45/lb.

Operating better than expected

Total costs US$0.63/lb.

Plans 58,000 tonnes in 2002 and 2003

Status Cash costs Q3/02 US$0.45/lb.

Operating better than expected

Total costs US$0.63/lb.

Plans 58,000 tonnes in 2002 and 2003

32

Rigorous Project ManagementRigorous Project Management

Falconbridge Stage-Gate Process Multi-disciplinary representation

Consistent methodology and assumptions

Well-defined project charter

Post-audit follow-up

Falconbridge Stage-Gate Process Multi-disciplinary representation

Consistent methodology and assumptions

Well-defined project charter

Post-audit follow-up

33

Strategy Going ForwardStrategy Going Forward

Maximize potential of existing operationsMaximize potential of existing operations

Grow nickel and copper businesses profitablyGrow nickel and copper businesses profitably

Ensure a strong financial positionEnsure a strong financial position

34

Growth Projects – Koniambo: OverviewGrowth Projects – Koniambo: Overview

One of the world’s best nickel laterite deposit

– Resources: measured and indicated of 80M tonnes at 2.6% Ni

– Inferred: 71M tonnes of 2.5% Ni

60,000 tonnes/year nickel in ferronickel

Substantial expansion potential

One of the world’s best nickel laterite deposit

– Resources: measured and indicated of 80M tonnes at 2.6% Ni

– Inferred: 71M tonnes of 2.5% Ni

60,000 tonnes/year nickel in ferronickel

Substantial expansion potential

Koniambo

New Caledonia

35

One of World’s Best DepositsOne of World’s Best Deposits

2.62%

1.70%

1.14%0.95%

Koniambo PT Inco Falcondo Australian PAL

2.62%

1.70%

1.14%0.95%

Koniambo PT Inco Falcondo Australian PAL

(% Ni)

• High grade• 60-year production

horizon

• High grade• 60-year production

horizon

36

Using Proven, Updated TechnologyUsing Proven, Updated Technology

Proven pyrometallurgical process with modern equipment

Conservative, sequential approach = rapid start-up

No tailings

Proven pyrometallurgical process with modern equipment

Conservative, sequential approach = rapid start-up

No tailings

37

Extensive Development ProgramExtensive Development Program

ConsultationsConsultationsGovernment

RelationsGovernment

Relations OrganizationOrganization StudiesStudies

Extensivepublic

consultations

200+ presentations

Coordinationwith French,provincial and local

governments

Strongorganization

and clearaccountability

Thoroughgeotechnical,

engineering andenvironmental

baselinestudies, etc.

38

Attractive Financial ReturnsAttractive Financial Returns

Cost US$1.57B includes– $450M, power generation (2

x 125 MW)

– $241M, significant 18% contingency

Expect 15% target return

Cost US$1.57B includes– $450M, power generation (2

x 125 MW)

– $241M, significant 18% contingency

Expect 15% target return

39

New Nickel Supply NeededNew Nickel Supply Needed

(‘000 MT)(‘000 MT)+4.2% growth p.a.+4.2% growth p.a.

900

1100

1300

1500

1700

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Existing World Producers

Goro

Voiseys

Koniambo

Ravensthorpe

Other

900

1100

1300

1500

1700

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Existing World Producers

Goro

Voiseys

Koniambo

Ravensthorpe

Other

Supply growth limited until at least 2006

40

Koniambo: Status & Next StepsKoniambo: Status & Next Steps

Status Q4/01: Baseline study

Q3/02: Pre-feasibility study

Q4/02: 70% of EnvironmentalImpact Study (EIS) completed

Next Steps Q1/03: File EIS

Q3/03: Decision on Bankable Feasibility Study

2004: Finalization of project bank debt

Late 04: Decision on project go-ahead

07/08: Production to start

Status Q4/01: Baseline study

Q3/02: Pre-feasibility study

Q4/02: 70% of EnvironmentalImpact Study (EIS) completed

Next Steps Q1/03: File EIS

Q3/03: Decision on Bankable Feasibility Study

2004: Finalization of project bank debt

Late 04: Decision on project go-ahead

07/08: Production to start

41

Grow nickel and copper businesses profitablyGrow nickel and copper businesses profitably

Strategy Going ForwardStrategy Going Forward

Maximize potential of existing operationsMaximize potential of existing operations

Ensure a strong financial positionEnsure a strong financial position

42

Financial ObjectivesFinancial Objectives

Return on equityReturn on equity

Investmentgrade

Investmentgrade

Pre-tax return on net assetsPre-tax return on net assets

Credit ratingCredit rating

18%18%

15%15%

43

-5%

0%

5%

10%

15%

20%

25%

30%

35%

1994 1995 1996 1997 1998 1999 2000 2001

-5%

0%

5%

10%

15%

20%

25%

30%

35%

1994 1995 1996 1997 1998 1999 2000 2001

RONA Since IPORONA Since IPO

Goal = 18%

Average = 14%

(1) Average LME cash nickel and copper prices

Return on Net Assets – %Return on Net Assets – %

44

ROE Since IPOROE Since IPO

-4%

0%

4%

8%

12%

16%

20%

1994 1995 1996 1997 1998 1999 2000 2001

-4%

0%

4%

8%

12%

16%

20%

1994 1995 1996 1997 1998 1999 2000 2001

8%8%

15%15%Goal:Goal:

45

2001 20022001 2002

$236$236

$303$303

2001 20022001 2002

$36.5M$36.5M$40.3M$40.3M

9 Months 2002 Earnings and Cash Flow9 Months 2002 Earnings and Cash Flow

EPS $0.17 – up from $0.16EPS $0.17 – up from $0.16

EarningsEarnings Cash FlowCash Flow

46

$76

$106

$106

$133

$113

$29

$36$47

$33$33

2001 2002F

Collahuasi Kidd - Mine D OtherRaglan New Caledonia

$76

$106

$106

$133

$113

$29

$36$47

$33$33

2001 2002F

Collahuasi Kidd - Mine D OtherRaglan New Caledonia

$348$348 $364$364

Capital ExpendituresCapital Expenditures

CDN$ MCDN$ M

Capex 2003: $500-600 millionCapex 2003: $500-600 million

47

(As at September 30, 2002)(As at September 30, 2002)

Financial FlexibilityFinancial Flexibility

US$500 M commercial paper program authorized– US$ equivalent of $108 M outstanding

Cash balances of C$262 M

Evergreen bank credit facilities– US$465 M total capacity– Totally undrawn

No major maturities until 2005

Flexibility – capital expenditure programs

US$500 M commercial paper program authorized– US$ equivalent of $108 M outstanding

Cash balances of C$262 M

Evergreen bank credit facilities– US$465 M total capacity– Totally undrawn

No major maturities until 2005

Flexibility – capital expenditure programs

Total availability ~$US400 MTotal availability ~$US400 M

48

Why Invest in FalconbridgeWhy Invest in Falconbridge

World-class nickel and copper assets

Management team with history of delivering results

Financial flexibility to weather the downturns

Low-cost producer

Maximizing potential of existing operations

Improving Nickel and Copper outlook

World-class nickel and copper assets

Management team with history of delivering results

Financial flexibility to weather the downturns

Low-cost producer

Maximizing potential of existing operations

Improving Nickel and Copper outlook

49

Forward-Looking Statements

Falconbridge cautions that statements made to describe the Company’s intentions, expectations or predictions may be “forward-looking statements” within the meaning of securities laws. The Company cautions that, by their nature, forward-looking statements involve risk and uncertainty and that the Company’s actual results could differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Information Form for a description of the major risk factors.

Falconbridge cautions that statements made to describe the Company’s intentions, expectations or predictions may be “forward-looking statements” within the meaning of securities laws. The Company cautions that, by their nature, forward-looking statements involve risk and uncertainty and that the Company’s actual results could differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Information Form for a description of the major risk factors.

FalconbridgeFalconbridgeA nickel copper companyA nickel copper company

Additional slidesAdditional slides

52

Sensitivity To Price ChangesSensitivity To Price Changes

CDN$ MCDN$ M

Cash FlowCash Flow EarningsEarnings

Nickel: 50 US¢ changeNickel: 50 US¢ change $135$135 $95$95

Copper: 10 US¢ changeCopper: 10 US¢ change $114$114 $74$74

53

Corporate Governance Procedures in Place at FalconbridgeCorporate Governance Procedures in Place at Falconbridge

Disclosure policy consistent with TSX guidelines

Inter-company transaction policy

Various committees of the Board, such as Corporate Governance, Independent Directors and Audit are chaired by independent Directors

Independent Directors meet at least on a quarterly basis

Audit Committee meets on a quarterly basis

Disclosure policy consistent with TSX guidelines

Inter-company transaction policy

Various committees of the Board, such as Corporate Governance, Independent Directors and Audit are chaired by independent Directors

Independent Directors meet at least on a quarterly basis

Audit Committee meets on a quarterly basis

Committed to maintain a high standard of disclosure and governance:Committed to maintain a high standard of disclosure and governance:

54

First Use of Nickel 2001First Use of Nickel 2001

Nickel alloys15%

Other6%

Plating9%

Stainless steel67%

Foundry3%

Nickel alloys15%

Other6%

Plating9%

Stainless steel67%

Foundry3%

Source: NIDi - End Use of Nickel 1990-2001Source: NIDi - End Use of Nickel 1990-2001

55

End Use of Nickel 2001End Use of Nickel 2001

Engineering20%

Construction10%

Tubular products

9%

Metal goods15%

Other9%

Electronic14%

Transport23%

Engineering20%

Construction10%

Tubular products

9%

Metal goods15%

Other9%

Electronic14%

Transport23%

Source: NIDi - End Use of Nickel 1990-2001Source: NIDi - End Use of Nickel 1990-2001

56

WW Stainless Steel Expansions – Expected CompletionWW Stainless Steel Expansions – Expected Completion

0

500

1,000

1,500

2,000

2,500

3,000

2001 2002 2003 2004 2005 2006

Tang Eng 75AK Steel 200AST 650

ALZ 400Acesita 200NAS 800

Fafer 500Arcelor 550Hunter 260Posco 670Sail 250Taiyuan 550

Outokumpu 1000Shanghai No.1 720

ShanghaiKrupp 500

(000’s tonnes)

57

Exports of CIS Scrap Have FallenExports of CIS Scrap Have Fallen

0

100

200

300

400

500

600

700

1995 1996 1997 1998 1999 2000 2001 2002F

Gro

ss W

eig

ht

(kt)

Baltic Rep. Poland Ukraine Russia

0

100

200

300

400

500

600

700

1995 1996 1997 1998 1999 2000 2001 2002F

Gro

ss W

eig

ht

(kt)

Baltic Rep. Poland Ukraine Russia

58

Breakdown of Scrap UnitsBreakdown of Scrap Units

Revert31%

Prompt16%CIS

6%

Old/ blended47%

Revert31%

Prompt16%CIS

6%

Old/ blended47%

59

World Consumption of Stainless SteelWorld Consumption of Stainless Steel

Western Europe

33%

Japan13%USA

15%

Other West25%

China12%

CIS/East Europe

2%Western Europe

33%

Japan13%USA

15%

Other West25%

China12%

CIS/East Europe

2%

Source: World Stainless Steel Statistics, 2001.Source: World Stainless Steel Statistics, 2001.

60

End Use of Copper 2001End Use of Copper 2001

Electronics35%

Transport11%

Industrial machinery

9%

Construction37%

Consumer goods

8%

Electronics35%

Transport11%

Industrial machinery

9%

Construction37%

Consumer goods

8%

61

Chinese Production Growth in Selected Products - 2H’02 vs. 1H’01Chinese Production Growth in Selected Products - 2H’02 vs. 1H’01

Power generating equipment 72.3%

Personal computers 59.2%

Color TVs 43.1%

Electric cookers 42.6%

Integrated circuits 34.7%

Air conditioners 34.5%

Internal combustion engines 34.5%

Motor vehicles 32.2%

Washing machines 13.8%

Source: Macquarie Research, 23 September 2002

Power generating equipment 72.3%

Personal computers 59.2%

Color TVs 43.1%

Electric cookers 42.6%

Integrated circuits 34.7%

Air conditioners 34.5%

Internal combustion engines 34.5%

Motor vehicles 32.2%

Washing machines 13.8%

Source: Macquarie Research, 23 September 2002

62

End Use of Cobalt 2001End Use of Cobalt 2001

Hard facing7%

Magnets8%

Carbides15%

Catalysts10%

Colors12%

Batteries9%

Other14%

Superalloys25%

Hard facing7%

Magnets8%

Carbides15%

Catalysts10%

Colors12%

Batteries9%

Other14%

Superalloys25%

Source: Cobalt Development InstituteSource: Cobalt Development Institute