OREANDA-NEWS. On September 03, 2007 African Rainbow Minerals Limited (ARM) and Norilsk Nickel, 50:50 JV owners of the Nkomati Nickel Mine in the Mpumalanga Province in South Africa, announced that the R384 million (US$62 million) “Interim Plan” Project, released in February 2006, successfully started commissioning two months ahead of schedule, within budget and with zero lost time injuries, reported the press-centre of OJSC MMC Norilsk Nickel.

Full production from the project is now anticipated earlier in the fourth quarter than originally scheduled.

The current Massive Sulphide Body (MSB) mine is approaching the end of its life. The Interim Plan will mine the disseminated Main Mineralised Zone (MMZ) orebody at an annualised rate of 6,000 tonnes of contained nickel in concentrate for an expected life of mine of 10 years.

The objective of the Interim Plan is to bridge the gap between the depletion of the MSB and the proposed Phase 2 Expansion Project, planned for 2010. The Phase 2 Expansion Project envisages an expansion to produce an average 20,500 tonnes of nickel in concentrate per year over the life of the mine from a large scale open pit and an underground mine. The bankable feasibility study has been completed and is currently being reviewed by the joint venture partners with a decision  anticipated during the third quarter.

Peter Breese, Chief Executive of Norilsk Nickel International commented: “The Nkomati Interim Plan project team have done tremendously well to deliver this project ahead of schedule and within budget, given the current cost pressures faced by the mining industry. The Interim Plan is a logical step to sustain nickel production at Nkomati whilst the larger expansion is under consideration. I would also like to commend the team for achieving this success with no lost time injuries rates, which is a superb result.”

ARM’s Chief Executive Officer, Andre Wilkens said: “The Nkomati Interim Plan Project is yet another example of a project in the ARM stable which we are proud to announce has been delivered on time and within budget. We are confident that the Interim Plan will successfully bridge the gap between the first and second phases in preparation for the large growth project. Furthermore, Nkomati will benefit from improved chrome sales.”