BNamericas reported that London based resource group Anglo American has started phase two production at its Barro Alto nickel operation in Brazil's Goiás state.

Mr Allan Araújo press official at Anglo American told BNamericas that the company has invested a total of USD 1.9 billion in Barro Alto. Of the total, more than USD 12 million has been spent on environmental and conservation initiatives since the project started in 2006 and that over USD 5 million was spent on basic infrastructure for the Barro Alto town.

Barro Alto is expected to reach full capacity in the second half of 2012 and production will average 41,000 tonnes per annum in the first five years.

Mr Walter De Simoni head of Anglo American's nickel unit said that "We reached market specifications for the product in phase one."

Production started in late March 2011 and in the second half of April 2011, the entire output was already sold. The nickel unit posted a USD 93 million operating profit in H1 2011, an increase of 37% over the same period in 2010. Average production over the 26 year mine life will be 36,000 tonnes per annum.

Mr Araújo said that the company has the potential to increase nickel production in Brazil by a further 66,000 tonnes per annum or more from its Jacaré (Pará state) and Morro Sem Boné (Mato Grosso) projects, which still need approval.

(Sourced from www.bnamericas.com)