RIO TINTO GETS NOD FOR U.S. NICKEL/COPPER MINE

Rio Tinto Ltd (ASX:RIO) plans to invest millions developing its Kennecott Eagle nickel and copper mine in America, after it got environmental approvals for the project.

The mining giant said it would invest US$469 million in constructing the mine, in Michigan's Upper Peninsula, in the U.S. midwest, targeting first production in late 2013.

Nickel concentrates from the mine would contain an average 17,300 tonnes per year, and copper concentrates would contain an average 13,200 tonnes annually over six years, Rio said.

Rio Tinto said on Wednesday it had received final environmentalapprovals for the mine.

Rio's copper chief, Andrew Harding, said the long-term demand outlook remained strong both for nickel and copper. Bringing Eagle on stream would provide benefits from that growth.

The new mine will be the only primary nickel mine in the U.S., Rio Tinto said, and the first new mine in Michigan in decades.

"This reflects an environmentally responsible and community focused operation," Mr Harding said.

"The Upper Peninsula of Michigan is a highly prospective region for nickel and copper exploration and Rio Tinto is actively exploring for additional resources in the immediate area," the company said.

In May, two protesters were arrested at the mine site, which a native American tribe considers sacred ground.