NICKEL-COPPER DEVELOPMENT: Xstrata Nickel to build fifth mine at Raglan

QUEBEC - Swiss mining giant Xstrata says it will spend US$530 million to develop the Qakimajurq mine and extending the depth of Mine 2 at the Raglan nickel-copper mine on the Ungava Peninsula. The accommodation complex will be expanded and other infrastructure improvements made.

These two projects will increase nickel in concentrate production to 32,000 t/y by 2014 while maintaining the plant's production rate of 1.3 million t/y of ore. In addition, the concentrator 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 year by 2016.

The history and geology of the Raglan mine is posted at www.XstrataNickelRaglan.ca.