Kagara sees new nickel mine starting in 3 months

SYDNEY May 11 (Reuters) - First production of nickel from Australia's Lounge Lizard deposit will start in three months, owner Kagara Ltd (KZL.AX) said on Monday after it reached a cooperation agreement with neighbouring miner Western Areas NL (WSA.AX).

The agreement will result in consolidation of one of Australia's largest high grade nickel mines, holding around 140,140 tonnes nickel and yielding 3,000 tones of contained metal a year, Kagara Executive Chairman Kim Robinson told Reuters. (Reporting by James Regan)