Bloomberg reports that Australian miner Mirabela Nickel Ltd may build a smelter to process nickel ore from its Santa Rita mine in Brazil’s northeastern Bahia state and start underground mining.
The report cited Mr Antonio de Jesus Santana, a technical officer at state owned exploration company Cia. Baiana de Pesquisa Mineral, as saying that the expansion at the USD 600 million open pit mine that Mirabela started operating last month will depend on financing.
CBPM rented the mine site to Mirabela for 20 years and will receive 2.5% sales royalties. Mirabela will be Brazil’s second biggest nickel miner after Votorantim Group, producing about 150,000 tonnes of nickel concentrates in the mine’s first year. The mine will produce 210,000 tonnes a year when its open-pit operation reaches full capacity and may expand further with underground mining. Votorantim will buy half Santa Rita’s output on contract until 2014. MMC Norilsk Nickel, the world’s biggest nickel producer, will buy the
Mr Santana added that “Underground mining would expand Santa Rita’s productive life from the 10 years foreseen with an open pit operation. The underground mine and the smelter projects go hand in hand.”
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