Article: Australia : Australias Kagara sees nickel mine start in 3 mths.

Byline: manish03

First production of nickel from Australia's Lounge Lizard deposit will start in three months, owner Kagara Ltd said after it reached a cooperation agreement with neighbouring miner Western Areas NL .

"We'll see production starting in about three months," Kagara executive chairman Kim Robinson told Reuters.

Initial production will total around 3,000 tonnes of contained nickel a year, though that could increase to 5,000 tonnes in later years by spending a further $20 million ($US15.3 million) on mine development, Robinson said.

The agreement will result in consolidation of one of Australia's largest high grade nickel ...

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