Swiss-based global mining company Xstrata Nickel is to develop an open pit nickel project at the Koniambo mine, located in the South Pacific Ocean island New Caledonia.
Koniambo will be among the world's lowest cost nickel producers with initial annual production of 60,000t of nickel in ferronickel per year while offering substantial brownfield expansion potential, Xstrata says.
The project is budgeted at US$3.8bn with first ore expected to be processed in the first half of 2011, moving up to steady production in 2013.
Xstrata owns a 49% stake in Koniambo Nickel, the remaining 51% share is held by New Caledonian joint venture partner Société Minière du Sud Pacifique (SMSP).
By staff writer
