ROUYN-NORANDA, QC, Aug. 3 -- Xstrata plc (Xstrata) has approved today investments totalling US$530 million for developing new mining projects at the Raglan Mine in Nunavik.
With this major investment, Raglan Mine can go forward with constructing the Qakimajurq Mine and extending the depth of Mine 2, undertake major construction to the accommodations complex and make other improvements to related infrastructure.
Mike Welch, Vice-President, Xstrata Nickel Raglan mine said: "By investing US$530 million in Raglan Mine, Xstrata Nickel is once again demonstrating its confidence in QuÃ©bec's mineral potential in the north. Raglan continues to grow and the future outlook for our activity in QuÃ©bec is very promising."
Together, these two high grade projects will increase nickel in concentrate production to 32,000tonnes per annum by 2014 while maintaining the plant's production rate of 1.3 million tonnes of ore per annum. In addition, the processing plant will be upgraded in 2013 to enable it to handle the new, high-grade ore and reach a production rate of 40,000 tonnes of nickel in concentrate per annum by 2016.
"These investments complement the intention of the Government of Quebec's North Plan, which aims to promote the sustainable development of Quebec's far north and its resources. We are proud to play a key role in helping to achieve this objective. Thanks to this new investment, we will help stimulate Nunavik's economy and maintain annual employment for approximately 1,000 jobs for years to come, while continuing to demonstrate best practices in sustainable development and partnering with our local communities and other stakeholders," added Mr. Welch.