First Quantum Minerals Ltd. (TSX:FM) announced Monday it has decided to go ahead with a proposed US$400-million Kevitsa nickel-copper-PGE mine project in northern Finland.
"We look forward to applying our expertise to the development of one of the world's major undeveloped sulphide nickel deposits and one of the largest mineral discoveries in Finland's history," Philip Pascall, chairman and CEO of First Quantum, said in a news release.
"This development is a major step in our goal of becoming a globally diversified base metals company."
Plans are to start detailed engineering before the end of the year, with commercial production targeted for mid-2012
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Process facilities will be designed for five million tonnes per annum with built-in expansion capabilities
First Quantum said it estimated capital costs of the project at about US$400 million, with life-of-mine C1 cash operating cost estimated at approximately US$2.50 a pound nickel, net of byproduct credits.
It assumes a long-term nickel price of US$6.75 per pound and copper prices of US$2 a pound.
The company expects to employ a workforce of approximately 200 during commercial operations at the open pit mine.
Financing for the project is expected to be a combination of equity and loan, including Nordic institutions
"We are very pleased to be able to confidently approve the development of the Kevitsa project within just 18 months of the acquisition of the project," Pascall said.
"This accomplishment is a testament to the quality of the asset and to the co-operation of the Finnish government at all levels, regulatory agencies and local communities."
"We believe that Kevitsa is going to be a long-life operation that will be a meaningful contributor to the growth of the company and yield significant benefits to all of its stakeholders."
Vancouver-based First Quantum's shares were up 77 cents at $81.90 in early afternoon trading Monday on the Toronto Stock Exchange.