August 2, 2011 / 12:32 PM / 7 years ago

UPDATE 1-Xstrata to boost investment in northern Quebec

* Miner to invest $530 mln in developing Raglan Mine

* Investment to boost output and improve infrastructure (Figures in U.S. dollars, unless noted)

TORONTO, Aug 2 (Reuters) - Diversified miner Xstrata XTA.L said on Tuesday it plans to invest $530 million to develop new mining projects at its Raglan mine in northern Quebec.

With this investment, Raglan can go proceed with building the Qakimajurq mine on the property and extend the depth of Mine 2, the London-listed miner said.

The investment will also help improve both infrastructure and accommodation facilities around the site, said Xstrata.

The Raglan property operated by Xstrata Nickel, consists of a series of high-grade ore deposits. The site that produces mainly copper and nickel went into production in 1997. It currently produces about 30,000 tonnes of nickel-in-concentrate per year.

Xstrata Nickel said the proposed investment will increase nickel-in-concentrate production to 32,000 tonnes a year by 2014.

In addition, it will upgrade the processing plant in 2013 to enable it to handle the new, high-grade ore and reach a production rate of 40,000 tonnes of nickel-in-concentrate a year by 2016, the company said.

Xstrata, earlier on Tuesday, announced a dividend increase and indicated that it expects stronger results later in 2011. [ID:nL6E7J203P] (Reporting by Euan Rocha; Editing by Frank McGurty)

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