NORILSK NICKEL ANNOUNCES THE DISPOSAL OF ITS AVALON AND CAWSE NICKEL ASSETS CURRENTLY HELD IN CARE AND MAINTENANCE IN AUSTRALIA
OJSC MMC Norilsk Nickel (hereinafter – “Norilsk Nickel” or “the Company”), the world’s largest nickel and palladium producer, announces that through its Australian subsidiaries, Norilsk Nickel Avalon Pty Ltd and Norilsk Nickel Cawse Pty Ltd, it has entered into definitive agreements to sell its Avalon and Cawse nickel assets currently held in care and maintenance in Western Australia to Wingstar Investments Pty Ltd (“Wingstar”) a resource focused investment company with mining and exploration tenements in Western Australia. As a result of this transaction the Company expects to realize a significant gain, primarily through a release of previously recognized environmental and asset retirement provisions.
Under the terms of the agreements, Wingstar, will assume all environmental rehabilitation obligations related to the Assets.
The Assets encompass the Avalon (formerly Bulong) nickel laterite deposit and processing plant, the Cawse open pit mine and processing plant, and associated infrastructure. Avalon and Cawse were put on care & maintenance in 2003 and 2008, respectively.
The sale is subject to regulatory approvals and satisfaction of other customary closing conditions and is expected to close in the second half of 2014.
Citigroup continues to act as Norilsk’s exclusive financial advisor on the divestment of its portfolio of Australian nickel assets.
For further information, please, contact:
Phone: +7 (495) 797 82 94
Phone: +7 (495) 786 83 20
ABOUT THE COMPANY:
Open Joint-Stock Company Mining and Metallurgical Company NORILSK NICKEL is a diversified mining and metallurgical company, the world’s largest producer of nickel and palladium and a leading producer of platinum, cobalt, copper and rhodium. In addition, the Company produces gold, silver, iridium, selenium, ruthenium and tellurium. The production units of MMC Norilsk Nickel’s group in Russia are at the Norilsk Industrial District and the Kola Peninsula, and in Finland, Australia, Botswana and South Africa.In Russia MMC Norilsk Nickel’s shares are traded on the Moscow Exchange. ADR’s representing shares in MMC Norilsk Nickel are traded on the over the counter market in the US and on the London and Berlin stock exchanges.