Sumitomo Metal Mining plans to invest 14bn yen ($170m)
to boost the electrolytic nickel production capacity of its Niihama Nickel Refinery over three years.
The firm will increase production from 41,000t to 65,000t a year and is expected to complete the plant in 2013.
In 2009, the firm released a three-year business plan to expand and boost its nickel operations.
The business plan also includes work on the Taganito project to construct a large scale nickel refining plant in Mindanao, Philippines.