The project will develop a mine and treatment plant near Ravensthorpe in Western Australia and require the upgrade of the QNI Yabulu nickel refinery near Townsville in north Queensland.Nickel from the Ravensthorpe processing plant will be packaged and shipped through the Port of Esperance to Townsville for final refining at Yabulu.The global miner said the project would increase nickel production capacity from the expanded refinery by more than 140 per cent to 76,000 tonnes a year from 31,200 tonnes, and extend the life of the refinery by approximately 25 years.Construction is expected to commence in Ravensthorpe and Yabulu in late 2004, with first nickel metal production from the expanded Yabulu refinery expected in late 2007.In a briefing on its Ravensthorpe project on Tuesday BHP Billiton said nickel demand was expected to remain strong."We see strong demand for nickel extending for some years," BHP Billiton President Stainless Steel Materials Chris Pointon said.The key risks for the $US1.4 billion budget was the fluctuations of the US currency."The strengthening of the Australian dollar recently has raised our US budget significantly. Until our procurement of items (for the project) is completed ... we would be exposed should there be a further fall in the US dollar relative to the Australian dollar," Pointon said.