Xstrata Nickel has approved the $119-million Fraser Morgan project in Sudbury, development of which is expected to start in 2012 and begin production in 2013.
The company additionally approved its $530-million project at Raglan Mine in Quebec. The Qakimajurq deposit will start development this year and begin production in 2014, while the Mine 2 Lower Zone will start development in 2012 and begin production in 2014, and the concentrator upgrade is expected to begin in 2013.
“The investments in Xstrata Nickel's Canadian operations in Quebec and Ontario will provide a solid source of downstream feed for our Integrated Nickel Operations and solidifies our presence in these two world-class mining camps,” chief executive Ian Pearce said in a news release. “The Raglan and Sudbury expansions demonstrate our commitment to long-term growth in Canada and our contribution as a significant employer in the communities in which we operate.”
At the Fraser Morgan project, Xstrata will develop two zones of the existing Fraser Mine to access 6,000 tons and 2,000 tons annually of nickel and copper, while extending the life of the mine by five years to 2025.
According to the release, this project, combined with the agreement with Vale to extend the Fraser Mine Copper Zone announced this spring, will “enable the site to take full advantage of polymetallic ore bodies, utilize existing mill capacity to reduce unit costs at the Strathcona circuit, and provide a viable long-term local nickel feed for the Sudbury smelter.”
At Raglan in Quebec, Xstrata will develop the high-grade Qakimajurq and Mine 2 Lower Zone deposits, and upgrade associated infrastructure to increase annual nickel in concentrate production from 26,000 to 32,000 tons annually by 2014. Raglan's concentrator will be upgraded to reach 40,000 tons annually of nickel in concentrate by 2016, a 54 per cent increase over current metal output, to facilitate further mining expansions.
The Qakimajurq deposit contains 2.6 million tonnes of probable reserves grading 4.40 per cent nickel and 0.85 per cent copper, while the Mine 2 Lower Zone contains one million tons of probable reserves grading 3.90 per cent nickel and 1.26 per cent copper.
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