Boliden AB and Lundin Mining Corp. are among companies considering final bids for First Quantum Minerals Ltd.’s Kevitsa mine as the Canadian explorer looks for ways to cut debt, people with knowledge of the matter said.
Kevitsa, one of the largest nickel reserves in Finland, may fetch at least $1 billion in a sale, the people said, asking not to be identified as the negotiations are private. First Quantum expects to receive final bids by early next year, one of the people said.
Mining companies globally are slashing costs and selling assets to counter a drop in commodity prices. First Quantum said in October that it plans to reduce debt by $1 billion through measures such as asset sales, as well as job and capital-spending cuts. The company’s share price has dropped 77 percent this year.
First Quantum is working with Jefferies Group LLC to identify potential buyers for the mine and has also retained the bank for a potential sale of its Ravensthorpe nickel mine in Australia, the people said.
The Vancouver-based company may decide not to dispose of the Ravensthorpe mine if it gets a good price for Kevitsa, two of the people said.
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