LONDON--Xstrata PLC (XTA.LN), the Anglo-Swiss mining company
that's in the process of merging with Swiss commodities broker
Glencore International PLC (GLEN.LN), said Friday Xstrata
Nickel--the industrial partner in the Koniambo Nickel Project--has
completed construction of the first production line of the smelter
Line 1.
MAIN FACTS:
-Necessary support services and operational infrastructure are
undergoing pre-operational testing and commissioning.
-First molten metal is expected before year end; Board
anticipates first metal being tapped from Line 1 in January
2013.
-Majority of construction resources will now be devoted to the
second production line, which is forecast to be complete in the
second quarter of 2013.
-Koniambo Nickel will ramp up to a steady state annual
production run rate of 60,000 tons of nickel in ferronickel within
two years, by the end of 2014.
-Koniambo Nickel's mine is already operating with the geological
integrity of resource forecasts intact.
-The ore-preparation plant and overland conveyer are in
operation and the team is working to ensure Xstrata has 30,000 tons
of on-spec ore ready for the metallurgical plant by the end of the
year.
-Xstrata shares closed in London Thursday at 1014 pence valuing
the company at 30.45 billion pounds.
-Write to Ian Walker at ian.walker@dowjones.com
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