AAP reported that mining company Mirabela Nickel has posted a first half USD 37.24 million net loss because of ramping up operations at its flagship mine. The result compares to a USD 17.54 million net loss for the first half in 2010.

The company's flagship Santa Rita mine in Brazil incurred a gross loss for the period of USD 16.05 million as compared to a gross profit of USD 523,000 in 2010. No dividend was paid or proposed during the period.

Mirabela sold 5,993 tonnes of nickel and 1930 tonnes of copper, contributing to gross sales of USD 123.56 million, offset by treatment, refining and transport charges of USD 23.05 million and cost of sales of USD 116.56 million.

The higher cost of sales during the period was mainly due to a stronger Brazilian real and US dollar exchange rate and increased operational costs reflective of the its ramp-up to full production.

It said its immediate focus was the expansion of its processing plant and crusher to 7.2 million tonnes a year.

(Sourced from AAP)