Tuesday, 10 Aug 2010
Reuters reported that nickel production at BHP Billiton's Cerro Matoso mine in Colombia will see output reduced by a quarter next year due to the replacement of a furnace starting in early 2011.
Cerro Matoso, with 21 million tonnes of measured reserves, produces about 4% of the world's nickel and 10% of global ferronickel.

Mr Ruban Yogarajah a spokesman for Cerro Matoso said that "Cerro Matoso has progressed its study into replacing the 27 year old Line 1 furnace and is expected to begin the replacement process in early 2011. The process will tax six months and will reduce output by the equivalent of one quarter of annual production."

Output at Cerro Matoso fell slightly in the second quarter of the year to 13,000 tonnes from the 13,700 tonnes produced in the same period last year. The mine produced 51,800 tonnes in 2009.

Cerro Matoso has an estimated reserve life of 40 years and BHP has concession rights until 2012, with a possible 30 year extension.

Colombia has 6 nickel deposits with measured reserves totaling 37.8 million tonnes and 46.48 million tonnes in indicated reserves. Colombia sees nickel production reaching 105,000 tonnes by 2019.

(Sourced from www.reuters.com)