Bloomberg reported that Xstrata Plc, the fourth largest nickel producer, is mulling new investments worth USD 9 billion and is still looking at acquisitions.

Mr Ian Pearce CEO of Xstrata Plc said that the company is studying 10 projects, which may add to the more than USD 14 billion it expects to spend on expansion in the next 3 years.

Xstrata is betting that a revival in metal and coal demand will continue as the global economy recovers from last year's recession. Base metal prices have gained 80% in the past year as Chinese demand jumped to a record on the government's stimulus spending and strategic reserve purchases.

Mr Pearce said that "The majority of the projects are low cost, low risk, Brownfield expansions. Xstrata continues to look at opportunistic acquisitions as part of strategy."

He said that Xstrata's Koniambo nickel mine in New Caledonia is on track to start production in 2012. Long term demand for nickel is positive and China and India are behind stainless steel demand.

(Sourced from www.bloomberg.net)