Glencore opens new nickel-copper mine at Raglan

Glencore (LSE: GLEN) says its new Anuri underground mine at its Raglan nickel-copper operation in Nunavik, Que., will extend the nickel-copper operation’s mine life by at least 20 years.

Raglan produced 39,100 tonnes of nickel last year and the opening of a new mine there contrasts with closures of nickel mines in Australia amid a glut of Indonesian production that has weighed on prices.

Estimated earnings (EBIDTA) from its metals devision were down 41% last year to $5.4 billion, on lower realized prices for cobalt, nickel and zinc, and lower sales, Glencore reported last week in its preliminary figures for 2023.

Anuri is part of Glencore’s Sivumut project, consisting of the expansion of the existing Qakimajurk mine as well as Anuri. Mining is expected to take place from 2020 to 2035. The extension of the Qakimajurk mine, known as project 8, was completed in 2021.

Sivumut means “moving forward” in Inuktitut, and Anuri, “wind.”

Glencore director of projects, geology and exploration Jan-Francois Verret said the project was a challenge on every level. “… particularly given the pandemic, the Arctic climate and numerous logistical challenges. Nevertheless, we completed the Sivumut project ahead of schedule, under budget and with everyone’s safety at the heart of every step. We achieved this through outstanding collaboration within our team and with our partners.”

The Raglan mine began production in 1997. It was the first mining project to sign an impact and benefits agreement with the local Indigenous bands. With the Sivumut project, Glencore says it has continuously improved the Raglan agreement, particularly in the area of land use, culminating in the current ESG protocols that meet Quebec’s provincial environmental act and the James Bay and Northern Quebec Agreement.

Raglan has proven and probable reserves of 15 million tonnes grading 2.55% nickel, 0.72% copper and 0.06% cobalt. Measured and indicated resources come to 22.2 million tonnes at 3.11% nickel, 0.9% copper, and 0.07% cobalt.