China’s Jinchuan Group has resumed production at its Munali nickel mine in Zambia and is looking to increase output to 1.2 million tons by 2012.
The mine currently produces 900,000t a year.
Production was halted last year following a fall in metal prices.
Ore output in early 2009 was recorded at 74,000t below the forecast of 87,000t, due to a lack of equipment and lower grades.
The Munali mine, which was previously owned by Australia’s Albidon, was taken over by Jinchuan which invested $37m into the mine.
The Chinese firm also reportedly invested $12.6m to purchase underground mining equipment, according to Reuters.