Western Australian nickel assets owned by two of the world’s largest producers of the metal have been sold or are currently up for sale and attracting much interest.
LONDON (MINEWEB) – Australian nickel projects, presumably deemed non-core businesses, by mining majors BHP Billiton, and Norilsk Nickel are either reportedly up for sale, or sales have been agreed, which will see some of the country’s nickel production, or potential output move into the hands of new ownership. Australia was the world’s fourth largest nickel producer (after the Philippines, Indonesia and Russia) in 2012.
BHP Billiton, which had previously sold off its Ravensthorpe nickel mine and metallurgical plant to First Quantum back in December 2009 for $340 million – having cost over $2 billion to build – is now looking to sell the rest of its Western Australian nickel operations which come under its Nickel West banner, comprising the Mount Keith Nickel mine, Leinster Nickel mine, Kambalda Nickel concentrator, Kalgoorlie Nickel rmelter and Kwinana Nickel refinery.
There are reportedly six major potential suitors for the package, including Mick Davis’ X2 Resources. BHP inherited its nickel mining operations through the take-over of Western Mining in 2005.
Simultaneously, Norilsk Nickel the world’s largest nickel producer, has announced that through its Australian subsidiaries, MPI Nickel and Black Swan Nickel it has agreed to sell its Black Swan/Silver Swan assets, also located in Western Australia and currently under care and maintenance, to Poseidon Nickel. Norilsk had been reported as planning to sell all of its Australian assets back in May.
Norilsk says it expects to realise a material gain on the transaction, primarily through the release of environmental obligations which will be fully assumed by Poseidon.
The Norilsk properties comprise the Black Swan open pit mine, the Silver Swan underground mine, a processing plant and associated infrastructure. These were put on care and maintenance in February 2009.
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