State approves Western Areas mine

Western Areas has received final ministerial approval for its $36 million Spotted Quoll nickel mine in Forrestania, with Mining and Civil Australia due to start site work later this month.

Environment Minister Donna Faragher gave her final approval for the Spotted Quoll open pit mine to proceed, where first production is expected around March next year.

Spotted Quoll was discovered two years ago and has a mineral reserve of 19,900 tonnes of contained nickel.

Target production has been set at 8,500t of nickel in calendar 2010 and 9,800 the following year. Cash costs have been estimated to be less than $US2 per pound of nickel in concentrate.

Western Areas said the mining and site development contract has been awarded to Mining and Civil Australia.

The company last month gave the go ahead for a $62 million expansion of its FOrrestania operation which included Spotted Quoll and the expansion of the Cosmic Boy concentrator.

Shares in Western Areas were up four cents to $5.10 at 12:30 AEST.