Xstrata Nickel's Falcondo ferronickel complex Falconbridge Dominicana SA will restart operations to a planned 50 percent of installed capacity by March 2011.
Falconbridge Dominicana SA is a nickel mining and processing operation in the Dominican Republic owned by Xstrata Nickel, Anglo-Swiss mining giant Xstrata's nickel producer subsidiary. The Falconbridge operations were suspended in response to the global economic downturn in August 2008.
Xstrata said that Falcondo's restart takes advantage of improved market conditions and optimization of mining and production plant processes. In addition, the plant will reduce costs with the signing of a commercial agreement with local power company AES Dominicana for the supply of electricity as energy source instead of oil, enabling Falcondo to restart operations sooner.
The project to convert the long-term energy source for Falcondo's process plant from oil to natural gas to enable the operation to reach 100 percent production capacity will continue in conjunction with the resumption of operations.
Falcondo will begin restart activities immediately, including the recruitment of qualified personnel, continued plant maintenance and preparation for mining operations. Production is expected to ramp up to 50 percent capacity, or approximately 14,000 mt per annum of nickel in ferronickel, by March 2011.
Ian Pearce, chief executive officer of Xstrata Nickel, said, "The work done by the Falcondo team during the care and maintenance period to become a more efficient operation has enabled this low-cost option."