Thermodynamic and phase transformation analyses of nickel laterite ores processed in industry have been carried out. The nickel in the laterite ores is principally associated with Fe rich goethite and serpentine particles. The thermodynamic analysis suggests that the nickel recovery from the Fe rich matrix is limited by equilibrium. The nickel recovery from the single phase serpentine/olivine appears to be higher for particles with Mg/Fe molar ratio <8. The nickel partitioning to the alloy phase is sensitive to the change of temperature and oxygen partial pressure both in the case of reduction roasting of Fe rich goethite and serpentine. It has also been shown in the current study that the optimum conditions for high nickel recovery from the Fe rich goethite and serpentine are different.