Xstrata: First production line completed at Koniambo nickel project

Xstrata Nickel, one of Xstrata Group's global commodity businesses and the industrial partner in the Koniambo Nickel Project, has completed the construction of the first production line of the smelter, with first metal from the line expected to be tapped in January.

Xstrata Nickel, one of Xstrata Group's global commodity businesses and the industrial partner in the Koniambo Nickel Project, has completed the construction of the first production line of the smelter, with first metal from the line expected to be tapped in January.

The necessary support services and operational infrastructure are currently undergoing pre-operational testing and commissioning, the firm said, adding that the majority of its construction resources will now be devoted to the construction of a second production line.

Ian Pearce, Chief Executive of Xstrata Nickel, said: "We are very excited about the progress being made at Koniambo, including the successful delivery of Line 1. It is a testament to our dedicated project and operation teams at Koniambo Nickel that we can now focus on moving to first production.

"Our journey to this point has been a long and complex one, but Koniambo Nickel is finally close to becoming a reality and bringing mutual benefit to all the stakeholders who have a keen interest in its success. I am proud of the role Xstrata has played in making Koniambo Nickel a reality - including continuing construction throughout the global financial crisis - and the support we have received from our many partners in New Caledonia and France."

The second production line is expected to be completed in the second quarter of 2013, as part of the project's target to ramp up to a steady state annual production run rate of 60,000 tonnes of nickel in ferronickel within two years, by the end of 2014.

"Koniambo Nickel's mine is already operating with the geological integrity of our resource forecasts intact," the group added. "The ore-preparation plant and overland conveyer are in operation and the team is working to ensure we have 30,000 tons of on-spec ore ready for the metallurgical plant by the end of the year."

NR

Recommended

Share tips of the week – 19 August
Share tips

Share tips of the week – 19 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
19 Aug 2022
How to invest in smart factories as the “fourth industrial revolution” arrives
Share tips

How to invest in smart factories as the “fourth industrial revolution” arrives

Exciting new technologies and trends are coming together to change the face of manufacturing. Matthew Partridge looks at the companies that will drive…
18 Aug 2022
How to invest today? Look to the past, not the future
Investment strategy

How to invest today? Look to the past, not the future

The past few years have seen so many changes to our way of life that many people said we had entered a “new normal”. But as it turns out, the new norm…
18 Aug 2022
A new legal headache for Haleon
Stocks and shares

A new legal headache for Haleon

Haleon, GSK’s former consumer-products arm, spun off last month, has made a dismal debut on the stockmarket.
17 Aug 2022

Most Popular

How to protect your wealth as inflation hits new record highs
Investment strategy

How to protect your wealth as inflation hits new record highs

UK inflation has hit a new record high of 10.1%. It's going to hurt, says Dominic Frisby. Here's how you can protect your wealth.
17 Aug 2022
How to cut your energy bill
Personal finance

How to cut your energy bill

The energy-price cap will almost double in the autumn. What does this mean for your money, and how can you alleviate the squeeze? Ruth Jackson-Kirby h…
17 Aug 2022
Are GSK’s legal troubles a threat to the firm’s survival?
Biotech stocks

Are GSK’s legal troubles a threat to the firm’s survival?

Pharmaceutical giant GlaxoSmithKline is facing legal action over heartburn drug Zantac that has seen billions wiped off its market value. Rupert Hargr…
16 Aug 2022