Xstrata funds Raglan expansion

Raglan at Quebec’s northern limit in Nunavik is one of the world’s highest grading nickel mines. In August, Xstrata Nickel, one of Xstrata‘s (XTA-L) global business units, approved a US$530-million extension project at that will develop the high-grade Qakimajurq and Mine 2 lower zone deposits of at Raglan and upgrade infrastructure to lift nickel-in-concentrate production from 26,000 tonnes to 32,000 tonnes per year by 2014. 

Under the extension scheme, Raglan’s concentrator will be upgraded to reach a capacity of 40,000 tonnes per year of nickel in concentrate by 2016, in a 54% increase to expand the mine.

Development of the Qakimajurq deposit, which contains 2.6 million tonnes of probable reserves grading 4.40% nickel and 0.85% copper, will begin this year with production by 2014.

The Mine 2 lower zone – containing 1 million tonnes of probable reserves grading 3.90% nickel and 1.26% copper – will begin development in 2012 and production in 2014. The concentrator upgrade is expected to begin in 2013. 

The Raglan investment will provide a solid source of downstream feed for Xstrata’s integrated nickel operations, the company says.

The Raglan property is made up of high-grade deposits, with nickel and copper as primary metals. The operation consists of underground mines, a concentrator, a power plant, accommodation and administration buildings, fresh water supply and fuel tanks. 

The mine site is linked by all-weather roads to an airstrip at Donaldson and to the concentrate, storage and ship-loading facilities at Deception Bay. The property stretches 70 km from east to west, with a series of deposits scattered along its length. By-productpalladium, platinum and cobalt are also produced.

There are three underground mines in operation: Katinniq, Mine 2 and Mine 3. A fourth underground mine called Kikialik is being built and is scheduled to start commercial production in 2012.

The nickel-copper concentrate is trucked from the Raglan mill 100 km to Deception Bay and then transported to Sudbury. After smelting in Sudbury, the matte material is shipped to Xstrata’s refinery in Norway.

Production began at Raglan in 1997.

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