Big expansion slated for Nunavik’s Raglan mine complex

Xstrata plans to sink $530 million into developing new mining projects at its Raglan mine complex in Nunavik, the company announced Aug. 2. (PHOTO/ XSTRATA)

Xstrata said today that it plans to sink $530 million into developing new mining projects at its Raglan mine complex in Nunavik.

Raglan plans to move ahead with constructing the Qakimajurq Mine and extending the depth of Mine 2, Raglan will also undertake “major construction” to its accommodations complex, upping the number of rooms to more than 860, and make other improvements to related infrastructure, said an Aug. 2 news release.

“By investing US$530 million in Raglan Mine, Xstrata Nickel is once again demonstrating its confidence in Québec’s mineral potential in the North. Raglan continues to grow and the future outlook for our activity in Quebec is very promising,” said Mike Welch, vice-president of Xstrata Nickel’s Raglan mine.

These two projects will increase nickel concentrate production to 32,000 tonnes a year by 2014, while maintaining the plant’s production at 1.3 million tonnes of ore a year.

Raglan’s processing plant will be upgraded in 2013 to enable the mill to handle the new, high-grade ore and reach a production rate of 40,000 tonnes of nickel concentrate a year by 2016, the news release stated.

“These investments complement the intention of the Government of Quebec’s North Plan, which aims to promote the sustainable development of Quebec’s far north and its resources. We are proud to play a key role in helping to achieve this objective. Thanks to this new investment, we will help stimulate Nunavik’s economy and maintain annual employment for approximately 1,000 jobs for years to come, while continuing to demonstrate best practices in sustainable development and partnering with our local communities and other stakeholders,” Welch said.

The Raglan complex now consists of three underground mines. A fourth mine, Kikialik, is already under construction, and scheduled to start commercial production in 2012.

Raglan also operates a concentrator, an accommodation complex, port facilities at Deception Bay, and an airstrip at Donaldson.

The ore from the mine is crushed, ground and treated at the Raglan mill to produce a nickel-copper concentrate. The concentrator has a milling capacity of 3,600 tonnes per day and an estimated annual production capacity of 30,000 tonnes of nickel concentrate.

Raglan now employs about 1,000 workers with Xstrata and the various joint-venture companies which work on the mine complex.

The new growth of the Raglan operation won’t entail any re-negotiation of the 1995 Raglan Agreement with Nunavik, because the mine’s production will essentially be maintained, said Francis Beauvais, Raglan’s co-ordinator of communications and public affairs.