Mincor has started production at its newest operation, the McMahon Nickel Mine in Western Australia , and has achieved record nickel production for the 2007-08 financial year.

Development at McMahon was completed on time and on budget by the company’s North Kambalda operational team and the first ore was delivered to the surface just 8 months after Mincor’s decision to proceed.

Mincor is Australia ’s third largest listed nickel producer and is targeting a long term production rate of 20,000 tonnes of nickel in ore per annum. It is pursuing an aggressive exploration growth strategy, with 8 drilling rigs active in the Kambalda Nickel District of Western Australia.

Mincor’s managing director David Moore says: “We are delighted with the success of our team in bringing McMahon into production safely and on time and budget. They have done an outstanding job and I believe the project will add tremendous value to our North Kambalda operations in the years to come.

Mincor has met its production target for the 2007/8 financial year, with record production of 18,900 tonnes of nickel in ore, or just over 16,500 tonnes of nickel in concentrate, a 28% increase over the previous year.

The company’s provisionally estimated operating surplus of $34.5 million for the final quarter of the financial year brings its operating surplus for the 2007/8 financial year to $168 million.

David Moore says: “This is a great way to round off a milestone year for Mincor. “We have achieved record nickel production, developed two new mines and enjoyed significant exploration success.

“After completing a major acquisition as well as substantial capital and exploration investments, we ended the financial year with more than $100 million in the bank and no debt, and have laid strong foundations for our next phase of growth.”

www.mincor.com.au