Nanocrystalline cobalt was carburised with ethylene in the range 340– 500°C to obtain Co(C) nanocapsules. The carbon deposit was reduced by a flow of hydrogen in the range 500– 560°C. The reduction kinetics were studied using thermogravimetry, described by the equation: α = Α[1-exp(-kt)n]. The apparent activation energy of the reduction process of the carbon deposit was determined. After carburisation and reduction the samples were examined by XRD and HRTEM.