SMM and Mitsui Reviews Up Capex for Goro Nickel Project

Sumitomo Metal Mining (SMM) and Mitsui & Co. announced on Friday they carry out additional capital expenditure of total 31 billion yen (US$ 279 million) for Goro nickel project in New Caledonia co-operated with CVRD Inco of Canada. SMM will additionally invest 16 billion yen (US$ 144 million) and Mitsui 15 billion yen (US$ 135 million). Total investment by SMM and Mitsui for the project will add up to 61 billion yen (US$ 550 million), 32 billion yen (US$ 290 million) by SMM and the rest by Mitsui.Goro nickel project is scheduled to start operation at the end of 2008. The total capex for the project was reviewed to 350 billion yen (US$ 3.2 billion) at the beginning of this year from 210 billion yen (US$ 1.9 billion) previously planned in 2005. SMM and Mitsui followed this review and revalued the project.