20/05/2021 - 15:22

Posco buys into Ravensthorpe

20/05/2021 - 15:22

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Toronto-listed First Quantum Minerals will sell 30 per cent of the Ravensthorpe nickel mine to South Korean Posco for $CAD240 million, with plans to consider battery precursor materials.

Posco buys into Ravensthorpe
First Quantum's Ravensthorpe nickel plant. Photo: First Quantum

Toronto-listed First Quantum Minerals will sell 30 per cent of the Ravensthorpe nickel mine to South Korean Posco for $CAD240 million, with plans to consider battery precursor materials.

First Quantum will retain a 70 per cent interest in the operation.

The mine was originally owned by BHP, but was sold to First Quantum in 2009 for $US 340 million.

It was closed in 2017 but reopened in 2020 after the nickel price surged thanks in part to demand from applications in the battery industry.

Posco also signed an offtake for 7,500 tonnes annually of nickel in a nickel-cobalt hydroxide precipitate, which will commence in 2024.

Posco and First Quantum have also agreed to evaluate a strategic partnership to manufacture battery precursor materials from production at Ravensthorpe, according to a release by First Quantum on the TSX.

Standard Chartered Bank and MinterEllison advised on the transaction.

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