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A drill being lowered to a drill hole at Puimajuq, one of the sites used for mining by Canadian Royalties, Inc., which was acquired by Jilin Jien Nickel Industry Co. in 2010.Canadian Royalties

Jilin Jien Nickel Industry Co. will invest an additional $400-million in its project to extract nickel in Nunavik in northern Quebec.

Wu Shu, the mining company's CEO, made the announcement Monday in Beijing after a meeting with Premier Jean Charest.

The addition of $400-million in the project brings the total investment of Chinese mining to $800-million in the northern tip of Quebec.

The mine is expected to begin production in mid-2012 and employ about 270 people.

The Chinese mine nickel for the chemical industry and for the manufacture of consumer products like batteries.

Jilin Jien Nickel Industry had acquired nickel mining company Canadian Royalties Inc. in 2010 near the Inuit community of Kangiqsujuaq.

The company has since signed an agreement with the three Inuit communities in the region for the payment of mining royalties.

Quebec premier Jean Charest calls the agreements with local Aboriginal communities a model for future mining investments in the region.

Mr. Charest is on a trade mission to China until Friday.

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