Diversified miner Rio Tinto is to invest $300 million in developing its Kennecott Eagle Mine, it has been announced.

The Michigan operation is expected yield "16,000 tons of nickel per over seven years…[and] valuable co-products of copper, platinum, palladium and cobalt," a statement from the firm said.

Construction is now due to get underway in 2008, with production set to commence in late 2009.

Rio's announcement comes after state regulators approved mine, air and groundwater discharge permits on Friday.

Since the application review process began in 2006, the mine has been subject to much opposition from local residents concerned over its potential environmental impact.

However, according to Eagle project General Manager Jon Cherry the design of the mine will mitigate any impact it will have on the state's emissions.

He said "Kennecott has designed Eagle for the smallest environmental footprint possible. The mine will be completely underground, accessed through a tunnel opening located in the same area where a water treatment plant, ore loading equipment and other facilities will be contained to less than 100 acres.

"All above ground facilities will be removed once mining ends to restore the area to its current conditions. The mine itself will be backfilled as mining occurs to protect the workers inside, and the earth's surface. Ore will be processed off site."

Source:

Rio Tinto to invest $300 mln in Michigan mine, 17/12/07
http://www.reuters.com/article/ousiv/idUSWLB482420071217

Michigan regulators approve first U.S. primary nickel mine, 17/12/07
http://www.mineweb.com/mineweb/view/mineweb/en/page36?oid=42264&sn=Detail


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