The mining giant, Rio Tinto is reported to be in plans to spend $500 plus million in a view to set up its Kennecott Eagle nickel and copper mine in the United States. Moreover, it has also been granted the environmental approvals for the project.

The Company is set to divulge $US469 million ($541.5 million) in developing the mine in the state of Michigan’s Upper Peninsula and hoping to witness the first production by late 2013.

Also, the Rio expects to yield 17,300 tons per year of nickel on an average basis from the mine and an average 13,200 tons annually of copper concentrates, over six years.

The plans for the construction of the mine have witnessed severe criticism from an indigenous American tribe as they considered the area sacred.

‘‘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”, Rio Copper Chief, Andrew Harding, quoted.

The mining giant, accompanied with fellow miners BHP Billiton and Xstrata, today reportedly tabled with federal Government officials in a view to discuss their issues over the proposed tax.

However, the federal Government has not yet formally announced whether the miners’ key issues concerning the proposed tax would be taken into consideration.

The Company shares ended up $1.92, or 2.8%, at $71.34.