Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

China's MMG in deal to sell long-idle Australian nickel mine

Published 28/09/2016, 03:30 pm
© Reuters.  China's MMG in deal to sell long-idle Australian nickel mine
1208
-

SYDNEY, Sept 28 (Reuters) - China's MMG Ltd 1208.HK on Wednesday said it will sell its long-idle Avebury nickel mine in Australia to a private exploration company for A$25 million ($19.19 million).

The sale, which MMG expects to finalise by the year-end, requires Australia-based Dundas Mining to pay a deposit of A$1.5 million. According to MMG, the sale agreement will be completed only when the full payment is done.

The deal comes amid concerns over global supply of the metal after the Philippines said 20 more mines may be suspended for environmental violations, threatening supply from the world's top nickel ore exporter. which has been trying to sell the 7,000-tonnes-per-year mine in Tasmania state since 2009, said the sale offers the best hope of operations restarting.

"Following an internal review, MMG initiated an expression of interest process for the asset and believes that this transaction provides the best opportunity to restart the mine," MMG said.

MMG put the mine on the block after acquiring it in a takeover of Oz Minerals in 2009.

It halted operations shortly afterwards as the cost of mining nickel exceeded the going price at the London Metal Exchange. This week, the LME three-month nickel price traded for around $10,600 a tonne CMNI3 , roughly the same price as in 2009.

Plans to sell the mine in 2014 to another Australian private firm for A$40 million collapsed before the deal got finalised.

MMG is the Hong Kong-listed arm of state-owned China Minmetals Corp.

($1 = 1.3031 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.