Indonesia curbing nickel supply to support locals, Eramet says
The French miner was this year given a sales quota by the Asian nation that was 29% less than it expected.
Xstrata Nickel Raglan Mine today presented a cheque in the amount of Cdn$15.2 million to the Makivik Corporation and the Inuit communities of Kangiqsujuaq and Salluit. This sum represents the Inuit communities’ share of the profits generated in 2010 by the Raglan nickel mine operation, located in Nunavik, Northern Québec.
To date, more than Cdn$100 million in profit-sharing payments have been directed to an Inuit trust fund for economic and community development through the Raglan Agreement.
The comprehensive agreement signed in 1995 by the Raglan operation, the Makivik Corporation and local Inuit communities supports harmonious relations and fosters opportunities between Xstrata Nickel and local populations in areas such as training, hiring of local businesses and environmental management.
“With the Premier’s announcement on Plan Nord, mining is a key component of our future development, and Makivik is positioning itself in a way where we can play a more active role in this industry,” said Pita Aatami, President of the Makivik Corporation.
Mike Welch, Vice-President Operations for Xstrata Nickel Raglan Mine, said: “We are committed to the sustainable development of Nunavik communities and the Raglan Agreement is an example of constructive and open dialogue with Makivik. Xstrata Nickel Raglan Mine is a world class operation striving for excellence that will continue to provide opportunities for its local communities and business partners for many years to come.”
Xstrata Nickel’s Raglan mining camp was constructed at a cost of Cdn$600 million and began production in 1997. This year, capital investments include more than Cdn$200 million for mining development activities, infrastructure maintenance and geology.
The operation consists of three underground nickel mines, and a fourth mine (Kikialik) is under construction and scheduled to start commercial production in 2012. Raglan also operates a concentrator, accommodation complex, port facilities at Deception Bay and an air strip at Donaldson. The ore from the mine is crushed, ground and treated at the Raglan mill to produce a nickel-copper concentrate. Milling capacity is 3,900 tonnes per day. Nickel capacity at the concentrator is 30,000 tonnes of nickel-in-concentrate per year.
