Tiberon Minerals Ltd said the cost of developing its Nui Phao tungsten-fluorspar mine in Vietnam has risen by almost a third.

In addition, the Canadian miner said it will have to seek additional financing to fund its equity share.

The mine, in Thai Nguyen province, is now expected to cost US$302.6 million to complete, up over US$70 million from its 2005 final feasibility estimate of US$230 million.

In a statement issued Thursday, Tiberon said the figure reflected "increased equipment and fuel costs and the general cost inflation for mining projects."

Despite the increase in costs, Tiberon said it expected the production volumes to increase.

Commenting on the news, Tiberon president and chief executive Mario Caron said the rise in equipment costs was so pronounced that some quotes for major pieces of equipment were up almost 100% year-on-year. Bankruptcy

"Despite this industry-wide increase, the impact of greater capital costs for Nui Phao is offset by increased production. Net cash production costs for both tungsten and fluorspar continue to place Tiberon at the very low end of the production cost curve," he added.