Article from Yaho news below. I know which I would rather invest...

Article from Yaho news below.

I know which I would rather invest in. JBM with it's growth to 30 ktpa and far beyond, or twice as much for a 60ktpa laterite project. Don't worry about the project depressing the pon, Xstrata won't be investing for a modest ROE, nor will we get that with JBM.

EL


Xstrata approves $3.8 billion New Caledonia nickel project Wed Oct 17, 7:11 AM ET



ZUG, Switzerland (AFP) - Swiss mining giant Xstrata said on Wednesday it has approved a nickel mining project in New Caledonia with a local partner worth a total 3.8 billion dollars (2.7 billion euros).

ADVERTISEMENT

Xstrata will fund around 80 percent of the investment and will receive in return the same percentage of cash-flows generated by the Konimabo mine over the next 25 years, a spokeswoman told AFP.

"The project will be funded through Xstrata's internal cash revenues and ongoing strong cash flows from the group's operations," the company said in a statement.

Xstrata will hold a 49 percent stake in the project via its Xstrata Nickel subsidiary, with the remaining 51 percent held by the South Pacific mining group SMSP, which is controlled by an independence movement in northern New Caledonia.

The Koniambo project is initially expected to produce 60,000 tonnes of nickel per annum, with the first ore seen processed in the first half of 2011, the company said.

"Koniambo is the most attractive undeveloped nickel resource in the world and will be a cornerstone asset for the future growth of our nickel business," said Xstrata Nickel chief executive Ian Pearce in a statement.

The project "enjoys strong support from the New Caledonian and French authorities, and from local partners," he added.

The Koniambo project is considered to be intensely political, notably as a means of preserving stability in the territory by making economic gains available to the indigenous Kanak population.