It is reported that most of the big new nickel developments around these days are on nickel laterite deposits, relatively plentiful, but difficult to process with few coming on stream without major start up problems in their complex and enormously expensive, hydrometallurgical extraction plants.

Thus it is encouraging to see that a large, low grade, open pit project based on mining nickel sulphide ore is now getting well under way at Mirabela Nickel's Santa Rita mine in Brazil. The mine site is a hive of activity with pre stripping already under way on the open pit and earthworks for the process plant foundations being constructed.

Major equipment items, SAG mill and ball mill are all due for delivery in the second half of the year with a view to mine start up in mid 2009 and with expansion plans over and above the initial project plan already in hand, and a smelter study in process. Project design has been completed and the contractors selected both for plant and mine construction and for the mining operation itself.

Obviously there are still some hurdles to be overcome before Santa Rita starts producing, about USD 160 million has been spent so far. The balance of the finance needs to be raised and the company is prepared to hedge 20% of its production forward to help achieve this.

Santa Rita deposit is the largest nickel sulphide resource in South America and the largest Greenfield nickel sulphide discovery made in the world in the last 12 years.