- Write by:
-
Thursday, May 20, 2021 - 14:09:49
-
605 Visit
-
Print
Mining News Pro - First Quantum Minerals on Wednesday said it agreed to sell a 30% stake in its Ravensthorpe nickel mine in Western Australia to South Korean steelmaker POSCO for $240 million.
The miner will remain as operator of the mine and retain a 70% interest.
“First Quantum expects to use the proceeds to reduce the outstanding balance on its revolving credit facility as it continues to focus on debt reduction,” the company said in a press release.
The companies have agreed to evaluate a strategic partnership to produce battery precursor materials from production at the mine.
Under the deal, POSCO will receive a long-term offtake agreement for 7,500 tonnes of nickel in mixed nickel-cobalt hydroxide precipitate per year produced at Ravensthorpe, beginning in 2024.
“Today’s transaction could be an example for future strategic investments in the sector,” said BMO Capital Markets in a note.
“As the ‘green’ economy gains strength, supplies of critical raw materials could become scarce – especially those supplies which are traceable to sustainable and ethical mining practices”
Ravensthorpe is a large-scale, open pit nickel and cobalt operation located in Western Australia.
Nickel production last year was 12,695 tonnes.
Midday Wednesday, First Quantum’s stock was down 7% on the TSE. The company has a C$19.5 billion market capitalization.
Short Link:
https://www.miningnews.ir/En/News/613555
The US and the Philippines are in discussions over ways to prevent China from dominating nickel processing in the ...
Glencore expects profit at its trading division this year to be at the top end of its long-term annual guidance, in an ...
Australian miner Lynas posted a slump in third-quarter sales revenue on Wednesday, missing analyst expectations on the ...
Eramet subsidiary SLN’s nickel mining operations in northern New Caledonia have been suspended, adding to difficulties ...
Brazilian miner Vale on Wednesday said lower prices for iron ore, nickel and copper in the first quarter dragged down ...
BHP Group Ltd. proposed a takeover of Anglo American Plc that values the smaller miner at £31.1 billion ($38.8 billion), ...
Australia’s Fortescue on Wednesday logged a larger-than-expected decline in third-quarter iron ore shipments, following ...
Interros, Nornickel’s largest shareholder, on Monday called allegations by fellow shareholder Rusal about undervalued ...
The London Metal Exchange (LME) on Saturday banned from its system Russian metal produced on or after April 13 to comply ...
No comments have been posted yet ...