Nickel and pgm producer Falconbridge has announced record earnings for 2004.

Releasing its full year results, Falconbridge said consolidated earnings for the year equalled $672 million, which compares with earnings of $191 million in 2003.

Earnings of $194 million for the fourth quarter were also reported, up from $95 million in the fourth quarter of 2003.

Meanwhile, overall operating income totalled $969 million in 2004, which compares to $301 million in the year previously

Falconbridge attributed these increases to higher metal prices in its main interest areas of nickel, copper and zinc.

Aaron Regent, president and chief executive of Falconbridge, stated: "We had a solid fourth quarter, capping an excellent year.

"Overall, we achieved strong operating results, which allowed us to maximise the benefits from high metal prices and realise record earnings."

Falconbridge also said that the underground definition project at Nickel Rim South is progressing on schedule and within budget.

The latest inferred mineral resource estimate suggests there are 13.4 million tonnes of 1.8 per cent nickel, 3.3 per cent copper and significant palladium and platinum resources.