The Ravensthorpe project, which underwent a slow development exercise for BHP Billiton at a cost of more than AUD 1 billion was stalled and sold about two years ago to Canadian listed First Quantum Ltd, which has a West Perth operating base.

First Quantum had been a significant player in the Zambian copper scene but about a year ago hit some political quicksand with the Government. The company's two operating mines are copper gold operations at Kansanshi in Zambia and Gueld Moghren in Mauritania.

The manager for government and community relations for First Quantum, Mr David Coggin told the Paydirt Australian Nickel Conference that the company has committed to start production at year's end and will aim for an average output of 39,000 tonnes of nickel concentrate for at least the first five years of life.

Modifications to the plant were just being concluded and pre-commissioning is underway.

Apart from undertaking a vigorous recruiting campaign for a workforce, First Quantum has had a low profile in recent months. One of its attractions is that the operation is close to the coast, in a farming community looking for new options and BHP Billiton had a large number of homes built that were lying idle.

Mr Coggin said that "The modifications have covered a range of components including two new ore crushing stations, a new dewatering facility at the beneficiation plant, upgraded buffer and storage ponds, upgraded tailings dam, bagging facilities and additional diesel power capacity."

First Quantum acquired the new Ravensthorpe nickel plant and mining leases from BHP Billiton in February 2010 for USD 350 million and spent the following six months assessing how it would get the plant up and running into a viable operation.

At the time BHP Billiton clearly developed cold feet about lateritic nickel, for it also quit the Yabulu lateritic nickel-cobalt refinery in north Queensland, now owned by high profile mining entrepreneur Clive Palmer.

Mr Coggin said that "On our numbers, we anticipate an average annual output of 28,000 tonnes of nickel concentrate over an expected life of mine of more than 30 years. The ore feed initially will come from the Halleys, Hale Bopp and Shoemaker Levy ore bodies."

He added that "We expect employee numbers at Ravensthorpe will build towards 500 by next year from the current 300 permanent staff on site. Our goal was to begin commissioning by the second half of this year and that goal is now within sight. We have taken a very realistic estimation of what we can do at Ravensthorpe and our output target of 39,000 tonnes is about 80% of the forecast 50,000 tonnes estimated by the previous owners."