The company expects construction costs to hit $6.3 billion, compared with the board of Xstrata’s initial approval of $3.9 billion, which was later revised to $5.3 billion.
Production this year is likely to be 4,000 tonnes of nickel in ferro-nickel.
“Koniambo is going to end up a $6.3 billion project. We always knew it was a problem project,” Glencore Xstrata ceo Ivan Glasenberg said.
The forecast for nickel in ferro-nickel production has been revised down, with 2015 expectations now at 55,000 tonnes, compared with Xstrata’s previous estimate of 61,000...