Reuters reported that Western Areas, Australia's third largest nickel producer, said that a new mine had yielded its first nickel ore two months ahead of schedule.

The company now expects to steadily increase output from its Spotted Quoll underground mine over the next few months to replace production from an open pit deposit at the site that is projected to run dry in the first quarter of 2012.

A study was underway to evaluate potential to increase the production rate from the new mine by 50% to 15,000 tonnes per year of nickel metal from the current target rate of 10,000 tonnes.

The results of the study would be known in December 2011.

Western Areas in July 2011 forecast fiscal 2011-12 nickel production of 25,000 to 27,000 tonnes.

(Sourced from www.reuters.com)