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ISHPEMING -- Kennecott Eagle Minerals Company announced that its parent company, Rio Tinto, will invest $469 million in the construction of the Eagle nickel and copper project located northwest of the City of Marquette, Michigan (USA) in Michigan’s Upper Peninsula.
 
Funding will enable construction of the new underground mine, associated surface facilities for servicing the mine, rehabilitation of the existing Humboldt Mill, and the development of a multi-use access road.

Eagle will be the only primary nickel mine in the U.S. and is the first new mining operation to be permitted and built in Michigan in decades.

Jon Cherry, General Manager of Kennecott Eagle Minerals said, “Nickel and copper from the Eagle deposit will add an important source of these raw materials as long-term demand for them is expected to grow.  At the same time, construction of the project in the near term, and its operations in the years ahead, stand to create hundreds of much needed and well paying jobs for Michigan workers.”

“This capital investment represents a major commitment to Michigan by Rio Tinto,” Cherry said.  “The inter-related projects Kennecott Eagle is pursuing in the Upper Peninsula reflect our focus on maintaining an enduring and expanding business presence in the region.  We believe our operations can and will make a positive contribution to the area’s struggling economy and challenged job situation, while demonstrating our commitment to environmentally responsible and community focused operations.”

Eagle will produce separate nickel and copper concentrates containing an average of 17,300 and 13,200 tonnes per year of nickel and copper metal, respectively, over six years.  Ores will be transported to Humboldt Mill in Champion, Michigan for milling and processing to produce concentrates that will be shipped to final refining facilities.

Tuesday’s funding approval by Rio Tinto gives the green light for construction of the mine, which was put on hold in 2008 in the wake of the global financial crisis.

Construction of the mine and mill projects will begin this year with initial site preparation and civil work at the mine site and demolition work at the mill.

The main focus of work in 2010 will be construction of an advanced water treatment plant and related environmental control systems, as well as detailed engineering.  Construction is slated to run through 2013 with production commencing in late 2013.

Combined, the mine and mill projects will create an estimated 700 new jobs, with more than 400 of them coming in the near-term three year construction phase and more than 200 during operations.