Particulate matter (PM) emission from residual oil combustion typically consists of carbonaceous material accompanied by inorganic matter notably transition metal sulfates. Often a minor sulfide form is found in the coarse fraction while an oxide form is more common in the fine and ultrafine fractions. A composite comprising of nanoscale nickel ferrite dispersed on carbonaceous matrix has been obtained following liberation of metal sulfates from the fine PM-a novel method of turning harmful particulates into a functional nanocomposite without the need for elaborate preparation using expensive precursors. The nickel ferrite content in the composite varies with the Fe/Ni ratio in particulate, fuel type, and combustion condition. Such variation may lead to the composite exhibiting diverse physical behaviors. Detailed structure and cation distribution in dispersed ferrite have been studied using Fe and Ni K-edges XAFS spectroscopy. Peaks are identified in the radial structure function with specific atom pair correlations within the spinel ferrite from which the relative occupancy of the cations in the octahedral and tetrahedral sites can be discerned. The results show that Ni(II) has strong preference for the octahedral site, while Fe(III) prefers both sites which is consistent with that of an inverted spinel ferrite. (C) 2010 Elsevier B.V. All rights reserved.