Canada's North American Palladium said it plans to expand its flagship mine in Northern Ontario and expects capital expenditure for the first phase of the project to be around $75 million.

The company, which also operates two gold mines in Quebec, expects to complete the first phase of the Lac des Iles (LDI) palladium mine expansion in the fourth quarter of next year.

After the completion of the first phase, the mine shaft will begin operating at a rate of 3,500 tonnes per day, North American Palladium said in a statement.

The capital expenditure for the project will include underground infrastructure and exploration drilling.

The mine is located about 85 kilometres northwest of the city of Thunder Bay, and its primary deposits are palladium with some platinum, gold, nickel, and copper by-products.