Sherritt InternationalCorp. said July 19 that the third acid plant at the nickel joint venture in Cubais in commissioning and has started producing sulfuric acid.

The 2,000-tonne-per-day plant is operating currently at about900 tonnes per day capacity, with full performance testing scheduled over the comingweeks.

The construction of the project was completed on time and onbudget of US$65 million, on a 100% basis.

The plant will potentially reduce the Moa project's net directcash cost by about 50 U.S. cents per pound, and the savings will come from the eliminationof third-party sulfuric acid purchases and reduced fuel oil purchases.

The benefits will be realized in the fourth quarter, with thefull impact expected in 2017.

Sherritt is reviewingits full-year production guidance following the shutdown of the nickel mine in Madagascardue to a blockage in the mine's tailings pipe.