Business Reporter reported that Canadian miner First Quantum Minerals hopes to reignite the nickel operation at Ravensthorpe in the State's south east by May 2011 following a rebound in the price of nickel.

Mr Philip Pascall CEO of First Quantum said that about USD 190 million in renovations would be undertaken getting the mine back up to scratch. He added that the company would start the front end of Ravensthorpe's plant in WA, followed by the main processing section a few months later.

First Quantum bought Ravensthorpe from BHP Billiton for USD 350 million in February 2010 after BHP closed the operation in January 2009 due to low nickel prices and high costs.

Mr Pascall said that nickel prices have rebounded to more than USD 10 a pound as compared to USD 6.75 a pound when First Quantum bought the project. The price rise is mainly due to the recovery of consumption in Asia, particularly in residential and commercial construction.

Mr Pascall said that First Quantum plans a phased restart of Ravensthorpe, following the USD 190 million renovation program. It aims to build production up to 39,000 tonnes a year of nickel.

(Sourced from Business Reporter)