Norilsk Nickel to Divest its Avalon and Cawse Nickel Assets

OJSC MMC Norilsk Nickel, Nickel and palladium producer has signed a definitive deal through its Australian units, Norilsk Nickel Cawse Pty Ltd. and Norilsk Nickel Avalon Pty Ltd. to sell off its Avalon and Cawse nickel assets to Wingstar Investments Pty Ltd.

MOSCOW (Scrap Monster): OJSC MMC Norilsk Nickel, Nickel and palladium producer has signed a definitive deal through its Australian units, Norilsk Nickel Cawse Pty Ltd. and Norilsk Nickel Avalon Pty Ltd. to sell off its Avalon and Cawse nickel assets to Wingstar Investments Pty Ltd. These reserves are currently kept in Western Australia for care and maintenance.

Wingstar Investments Pty Ltd is a resource focused investment company with exploration tenements and mining in Western Australia. Due to this sell off the firm expects to take in a considerable gain through a release of earlier recognized environmental and asset retirement provisions.

The assets comprise of Cawse open pit mine, processing plant and its associated facilities as well as Avalon nickel laterite deposits and its processing smelter. By pursuing the agreement, Wingstar would be responsible for all environmental rehabilitation obligations related to the assets. The two mines Avalon and Cawse were closed for care and maintenance in 2003 and 2008 respectively.

The proposed sale may close on the second half of this year. Citigroup is still the exclusive financial advisor of Norilsk Nickel on its Australian nickel assets divestment

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