The Raglan mine at the extreme limit of northern Quebec in Nunavik is one of the richest base metal mines in the world. In August, Xstrata Nickel, one of Xstrata‘s (XSRAF-O, XTA-L) global commodity businesses, approved a US$530 million extension project that will develop the high-grade Qakimajurq and Mine 2 Lower Zone deposits of the Raglan mine and upgrade infrastructure to lift nickel in concentrate production from 26,000 to 32,000 tonnes per year by 2014.
Under the extension scheme Raglan’s concentrator will be upgraded to reach a capacity of 40,000 tonnes per year of nickel in concentrate by 2016, a 54% increase over current levels, to facilitate further mining expansions.
Development of the Qakimajurq deposit, which contains 2.6 million tonnes of probable reserves grading 4.40% nickel and 0.85% copper, began this year and will start production in 2014.
The Mine 2 Lower Zone, a deposit containing one million tonnes of probable reserves grading 3.90% nickel and 1.26% copper, will begin development in 2012 and production in 2014. The concentrator upgrade is expected to begin in 2013.
The investment at Raglan will provide a solid source of downstream feed for Xstrata’s integrated nickel operations, the company says.
The Raglan property is made up of a series of high-grade ore deposits, with nickel and copper the primary metals. The operation consists of underground mines, a concentrator, a power plant, accommodation and administration buildings, fresh water supply and fuel storage tanks.
The mine site is linked by all-weather roads to an airstrip at Donaldson and to the concentrate, storage and ship-loading facilities at Deception Bay. The property stretches 70 km from east to west, with a series of high-grade ore deposits along its length. Significant quantities of palladium and platinum as well as cobalt are also produced.
Currently there are three underground mines in operation–Katinniq, Mine 2 and Mine 3.
A fourth underground mine called Kikialik is being built and is scheduled to start commercial production in 2012.
The ore is crushed, ground and treated at the Raglan mill to produce a nickel-copper concentrate. The concentrate is then trucked 100 km to Deception Bay, from where it is transported to Sudbury. After smelting in Sudbury, the smelted matte material is shipped to Xstrata’s refinery in Norway.
Production began at Raglan in 1997.
In June, the Raglan mine contributed $15.2 million to the Makivik Corporation and the Inuit communities of Kangiqsujuaq and Salluit. The funds were the Inuit communities’ share of the profits generated from the mine in 2010.
So far more than $100 million in profit-sharing payments have been given to an Inuit trust fund for economic and community development through the 1995 Raglan Agreement, the company says.
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