Nickel laterite approximately 40% of the remainder caning deposits. ores are the source of the world's nickel with from sulphide ore Although laterite ores are near the surface and cheap to mine they require significantly more energy to treat than sulphide ores. The escalation of oil prices comiencing in 1973 meant that nickel laterite refineries using oil as an energy source were placed at distinct disadvantage relative to sulphide refineries or those with coal derived energy. The Queensland Nickel refinery commenced a construction programme; in 1980 to allow ore drying and power generation to be converted from oil to coal. Since late 1981 ore drying has been undertaken using heated air from two moving grate spreader grate stokers. The changeover from oil to coal drying proceeded without process disruptions. This paper discusses the plant changes required to allow the receipt of coal and the operating performance obtained from the coal fired air heaters.