Rio Tinto pumps $469m into Eagle mine

15th Jun 2010 15:35

Rio Tinto is to spend $469m (£317m) building the Kennecott Eagle nickel and copper mine in Michigan's Upper Peninsula after receiving final environmental approvals.The money will fund construction of a new underground mine, surface facilities for servicing the mine, rehabilitation of an existing mill and development of a multi-use access road.Work will begin on the mine and mill this year and first production is expected in late 2013."Moving to the construction phase of Eagle is part of our strategy to increase investment in attractive growth projects in 2010," said Andrew Harding, chief executive Copper."The long-term demand outlook remains strong for both nickel and copper and bringing Eagle on stream will give us greater benefit from that growth." Rio points out that Eagle will be the only primary nickel mine in the US, and is the first new mining operation to be built in Michigan in decades.It 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.