UPDATE 1-Anglo American OKs $1.2 bln nickel mine in Brazil http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2006-12-07T103822Z_01_L07588047_RTRIDST_0_ANGLO-NICKEL-BRAZIL-UPDATE-1.XML&rpc=66&type=qcna
Thu Dec 7, 2006
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JOHANNESBURG, Dec 7 (Reuters) - The world's third biggest mining group Anglo American Plc (AAL.L: Quote, Profile , Research) gave the green light on Thursday to a $1.2-billion nickel mine project in Brazil.
The Barro Alto project is due to produce an average of 36,000 tonnes of nickel per year over a 26-year mine life, Anglo said in a statement, with construction due to start next year, first production in 2010 and full output the following year.
Barro Alto is loated in the Goias state in Brazil, about 170 km northwest of Brazilia and 150 km from Anglo's existing Codemin nickel operation.
"The Barro Alto project is an exciting greenfield project in acountry where Anglo American has longstanding nickel project management and operating experience," Anglo Chief Executive Tony Trahar said.
"The production from Barro Alto will contribute significantly to a potential doubling of the group's nickel production to around 90,000 tonnes per annum by 2011."
The deposit, which Anglo bought for $35 million in 2002, has a resource of 116.2 million tonnes at an average grade of 1.54 percent nickel.
Part of the Barro Alto deposit is currently being mined to feed the Codemin plant, allowing Codemin to boost output to 10,000 tonnes a year from 6,000 tonnes so Anglo can benefit from strong nickel prices.
Nickel prices on the London Metal Exchange <MNI3> touched a fresh record peak of $34,500 per tonne on Wednesday, after having soared by more than 150 percent this year.
Anglo shares in London were down 0.61 percent at 2,460 pence by 1030 GMT, compared with a 0.51 percent rise in the FTSE 100 index .FTSE.
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