TORONTO (CP) - Xstrata Nickel plans to boost production at its Raglan mine in northern Quebec to more than two million ore tonnes per year, nearly doubling its output, the company said Tuesday.
The Switzerland-based company, which acquired Toronto-based Falconbridge last year, said it plans to spend about $200 million on exploration over the next five years at the mine.
Raglan will be expanded to produce two million tonnes of ore per year, rising from the current 1.1 million tonnes to 1.3 million tonnes by the end of 2008 and additional capacity will be added beginning in 2011.
"After the expansion, Raglan will be one of the largest nickel mines in the world, with output approaching 50,000 tonnes of contained nickel in concentrate per annum, together with copper and platinum group metal byproducts," Xstrata said in a release.
"Our most recent exploration results are truly exceptional and confirm that Xstrata Nickel's Raglan property is located on one of the world's great nickel belts," chief executive Ian Pearce said in a statement.
"We are putting the necessary resources in place in order to ensure that the significant additional potential of Raglan is realized for all stakeholders."
The Raglan mine consists of three underground mines, one open-pit mine and a concentrator, with about 580 direct employees and 200 contractors.
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