Local supplier signs up to support nickel minePosted August 16,...

Local supplier signs up to support nickel mine

Posted August 16, 2011 20:11:52
Caterpillar logo on a building in Tasmania. Photo: Caterpillar logo on a building in Tasmania. (Jacqueline Street: ABC)
Map: Launceston 7250

The machinery company Caterpillar has signed a multi million dollar deal to finance Proto Resources' nickel project in northern Tasmania.

The proposed $50 million nickel laterite mine will be built north west of Launceston and is expected to produce its first nickel shipment by mid-2013.

Under the deal, Caterpillar will provide $36 million in finance and be the mine's main equipment supplier.

The remaining costs will be funded by Proto Resources joint venture partner, Metal Finance Corporation.

Proto Resources Managing Director Andrew Mortimer says it is an exciting deal.

"It is fantastic for us, there is no doubt about it, I mean nickel laterite has had a difficult history and now obviously the market can see that we have brought a global giant who are very interested in the project," he said.

"They are very keen to get involved and finance it and provide their equipment to it."

The former Howard government minister Ian Campbell has been appointed as Proto Resources new chairman