Norilsk Nickel sells Honeymoon Well Nickel project
Nornickel, the world’s largest producer of palladium and high-grade nickel and a major producer of platinum and copper, announces that through its Australian subsidiary, MPI Nickel Pty Ltd, it has entered into a definitive agreement with BHP Billiton Nickel West Pty Ltd (“BHP” or “the Buyer”), a wholly-owned subsidiary of BHP Group Limited, to sell its Honeymoon Well Nickel Project (“the Project”) for an undisclosed amount. Report informs citing the Mining & Metals.
The Project located in Western Australia encompasses Honeymoon Well, a greenfield nickel development, as well as Albion Downs North and Jericho Joint Ventures, both exploration projects where BHP currently owns the remaining 50% stake. The Project is the only Australian asset remaining in the Company’s portfolio.
BHP has an in-depth knowledge of the Project, which is expected to streamline the closing of the transaction.
“With the sale of Honeymoon Well Nickel Project, we complete the strategic exit from Australian operations and reinforce our focus on the development of our Tier-1 asset portfolio in Russia. We are grateful to BHP as our JV partner in Australia and appreciate their commitment to prompt execution of the transaction”, Sergey Dubovitsky, Nornickel’s Senior Vice President for Strategy, Strategic Projects, Logistics and Procurement commented.
The transaction is subject to regulatory approvals and other customary closing conditions.
Citigroup has acted as a financial advisor to Nornickel.