Reuters reported that CVRD Inco is considering a CAD 750 million (USD 760 million) investment that would boost production at its Thompson Manitoba nickel mining smelting and refining facilities by about 36%.

Mr Cory McPhee a spokesman of CVRD Inco said the planned expansion would extend the life of the Thompson operations by at least 5 years to at least 2027. But the CAD 750 million figures had not yet been confirmed. He added that "You could be looking at CAD 750 million. It's certainly not a confirmed figure, but it's something that would be contemplated.”

Mr McPhee said that the investment would increase production from Thompson to around 150 million pounds a year from current levels of around 110 million pounds. Mr McPhee said that "We have got impressive growth plans in the nickel business that could see us almost double our output by 2012.”

CVRD Inco said that last month it plans to spend CAD 59 billion in 2008-2012 to boost production of copper, nickel and iron ore.

Canadian nickel miner Inco was acquired last year by Brazil's Companhia Vale do Rio Doce.