Norilsk Nickel and African Rainbow Minerals (ARM) have approved plans to expand the Nkomati mine in South Africa.

The joint venture between the Russian metals giant and the South African miner will boost production of platinum group metals (pgms) by 110,000 oz annually, most of which will be palladium.

Work on the $456 million project will commence in early 2008 and is expected to take two years to complete with full production being reached by 2011.

The expansion is expected to extend the lifespan of the mine by 18 years to 2027.

Andre Wilkens, ARM Chief Executive Officer said: "The Phase 2 Large Scale Mining Expansion takes ARM to the next level of becoming a larger producer of nickel, in line with our 2 x 2010 strategy, and at an operational cost which is globally competitive."

The project is also expected to increase annual output of nickel at the Nkomati mine to 20,500 tonnes from 5,500 tonnes.

Sources:

Approval for Nkomati R3.2 billion ($445m) Phase 2 Large Scale Mining Expansion to quadruple annual nickel production to 20,500 tonnes, 27/09/07
http://www.nornik.ru/en/press/news/2218/

Norilsk Nickel to invest 830 mln usd in African assets over next 3 years, 27/09/07
http://www.forbes.com/markets/feeds/afx/2007/09/26/afx4156730.html

Ÿ Adfero Ltd