The Sinclair Nickel Project, wholly owned by Xstrata Nickel Australasia (XNA), includes an underground mine, a concentrator, a village, an all-weather airstrip and associated mine infrastructure. The operation is located 70 km north of Leonora in the prospective and historically productive eastern Goldfields region of Western Australia. Xstrata Nickel has successfully developed the Sinclair deposit into a 350 kt/a operation since its discovery in November 2005, with contained nickel metal production to date in excess of 10 600 t, of which 5500 t is from the underground operation.The narrow, continuous, medium-grade Sinclair nickel sulfide deposit accessed by the Phoenix Decline has a shallow 15 - 20 plunge that is approximately 1000 m long down dip and open at depth to the north. The flat plunge and low-grade nature of the orebody presents challenges regarding the amount of horizontal waste development that can be economically excavated, which in turn affects ventilation, egress, mine services and diamond drilling.The mineralisation is hosted between an ultra mafic hanging wall and a basalt footwall and is being mined using a bottom up, sublevel open stoping method. The stopes are retreated to a central access, filling voids in the process with waste mullock where possible and using cemented mullock fill where end exposure is required. Tight filling the flat dipping hanging wall has proved to be challenging given the angle of repose for the waste mullock fill is steeper than the angle of the hanging wall.Reconciliations of mine performance against the original feasibility study show positive changes and operational optimisations enabling Sinclair to achieve its mining targets in a safe, sustainable and economic manner. This paper discusses the mining operations associated with the first two years of the Sinclair Underground Nickel Project, providing an overview of the various issues encountered and the lessons learnt in the process.CITATION:Ireland, M J, Horne, D P and Simpson, S J, 2012. Overcoming mine design and production challenges at the Sinclair underground nickel project, in Proceedings Narrow Vein Mining 2012 , pp 37-48 (The Australasian Institute of Mining and Metallurgy: Melbourne).