TORONTO (miningweekly.com) – Switzerland-based Xstrata on Tuesday gave the green light to two Canadian nickel projects worth $649-million.

At the Raglan mine in Quebec, the London- and Swiss-listed firm would spend $530-million to develop two deposits and increase the operation’s yearly nickel concentrate output from 26 000 t to 32 000 t by 2014.

Xstrata will also boost the concentrator's capacity to 40 000 t/y by 2016, to create additional capacity for further mining expansions there.

The company’s Fraser Morgan project in Sudbury will receive a $119-million injection to push its planned closure out by five years to 2025.

The money will mainly go toward developing two zones of the existing Fraser mine to unlock additional ore.

Work on this project is set to start in early 2012 with first production due for the following year.

“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,” Xstrata Nickel CEO Ian Pearce said in a statement.

Xstrata Nickel is the world’s fifth largest nickel producer, and acquired its Canadian assets through the 2006 purchase of Falconbridge for about C$24-billion.

In November last year, Brazil’s Vale announced a planned $10-billion capital programme for its Canadian nickel operations of the next five years.

The spot price of nickel, used to give stainless steel its sheen, has climbed about 16% over the past 12 months to some $25 060/t, according to the London Metal Exchange’s website.
 

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