Xstrata to invest $455 million in Sudbury projects

As nickel prices climb down from the record numbers seen a year ago, the Sudbury camp continues to be a hotbed of activity and investment.

Xstrata Nickel is investing $455 million to expand and develop some local projects. Of that total, $175 million will be spent to upgrade capacity at the Strathcona Mill, which will be increased from 2.8 million tonnes per year to 3.4 million tonnes.

The remaining $280 million will be spent on development of the Fraser Morgan Mine, which will produce 620,000 tonnes of ore per year for eight years. It is expected to employ 350 people, bringing Xstrata's local workforce to 1,900.

Work is already underway on the two projects, which are both slated for completion in the latter half of 2010.

"We have great confidence in these projects," said Mike Romaniuk at an event earlier this month.