Xstrata has started building its Bracemac-McLeod mine in Quebec, Canada.
The mine will be located approximately 4km from Xstrata Zinc's Matagami concentrator, which is currently supplied with ore from Xstrata Zinc's nearby Perseverance mine.
At full production the McLeod mine will produce 80,000t of zinc and 10,000t of copper annually, ramping up to reach full production in the first quarter of 2013.
Xstrata said the total capital cost of the mine is approximately $151m.
Bracemac-McLeod is a joint-venture between Xstrata, holding a 65% operating interest, and Donner Metals.