BHP approves $177m Mount Keith work

BHP Billiton has given the go-ahead to a $US152 million ($A177 million) investment to enhance the processing of ore at its Mount Keith nickel operation in the eastern Goldfields.

The major today gave approval for the Talc Redesign project, which is expected to start operating in 2011.

The project will enable the Mount Keith concentrator to obtain full value from processing talc-bearing ore types, BHP said.

"The project will support the production and cost improvements at Mount Keith operation," the miner said in a statement.

"This will assist in sustaining the production level at Kalgoorlie Nickel Smelter at approximately 100,000 tonnes per annum."

Last month, BHP cut up to 70 jobs at Mount Keith to ensure the operation's economic viability.

It follows the axing of 300 workers at the operation earlier in the year, which coincided with the announcement the miner would close its Ravensthorpe nickel mine.