Xstrata Nickel has announced Q3 production report. Total mined nickel production in the third quarter of 2009 remained at a similar level to the same period in 2008. Production at Raglan increased by 12% YoY and improved grades and increased ore production more than doubled volumes at Xstrata Nickel Australasia.
Production of high grade ores began at the new, negative cash cost Nickel Rim South, which is on track to ramp up to 60% of full annual capacity by the end of 2009. These positive improvements in volumes at lower cost operations offset the impact of the restructuring of the Sudbury operations in early 2009, which included the closure of two high cost, end of life mines and the suspension of the Fraser Mine complex.
Montcalm was also indefinitely suspended in June, due to an unacceptable risk profile following unplanned ground movement. Refined nickel production from Nikkelverk increased by 4% during the quarter compared to the corresponding period in 2008 as reduced third party feed volumes were largely offset by increased mined production from Canadian and Australian operations.
The Falcondo ferronickel operation in the Dominican Republic remains on care and maintenance. Total mined copper production in the third quarter was 52% lower compared to the same period last year due to the closure of high copper containing nickel mines in Sudbury and Timmins, although this was partially offset by increased volumes from XNA.
| Production Data | Q3 '09 | Q3 '08 | 9M '09 | 9M '08 |
| Total mined nickel production (t) | 13,418 | 13,620 | 41,923 | 40,230 |
| Total refined nickel production (t) | 23,504 | 22,621 | 65,476 | 66,195 |
| Total mined ferronickel production (t) | 4,387 | 18,782 | ||
| Average LME nickel price(USD/t) | 17,694 | 18,961 | 13,692 | 24,533 |