Russian President Vladimir Putin, left, shakes hands with GMK Norilsk Nickel General Director Mikhail Prokhorov.
Photo: Dmitry Dukhanin
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GMK Norilsk Nickel Bought U.S. OM Group
GMK Norilsk Nickel has announced it completed the deal to buy out nickel assets of the U.S. OM Group, RBC reported.
The assets bought out by Norilsk Nickel include the nickel refining plant in Finland, Cawse ore leaching division in western Australia, 20 percent in MPI Nickel Pty. Ltd. (MPI, develops Black Swan and Silver Swan mines and implements the Honeymoon Well project) and 11.1 percent in Talvivaaran Kaivososakeyhtio (heap bioleaching project in Kainuu of Finland) as common stocks and convertible bonds.
The deal value was $408 million with the company’s debt not taken into account. As a result of it, the nickel refining capacity of Norilsk Nickel is expected to step up by 60,000 tons a year, and the own nickel output of the company (except tolling processing) will annually soar roughly by 35,000 tons to 40,000 tons. The payback period is estimated at around a year.
GMK Norilsk Nickel is the biggest nickel producer, accounting for 96 percent of the nickel output in Russia. It also covers 55 percent of copper output and 95 percent of cobalt production of the country.
www.kommersant.com
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