Norilsky Nickel Looks for Ore in Finland
// The Russian company eyes a share in Talvivaara Mining
Norilsky Nickel is negotiating buying a stake in Finland’s Talvivaara Mining. The Finnish company is looking for a partner to finance the construction of a nickel mine in Finland. Should the deal go through, Norilsky Nickel’s nickel resources will grow 14 percent. The Russians, however, are in no shortage of the resources, and would more likely build a complex to produce nickel at Talvivaara’s deposit.
Norilsky Nickel and Canada’s Inco are eyeing Talvivaara Mining which owns the deposit of Talvivaara, Bloomberg reported yesterday. Talvivaara is looking for an investor to build a mine worth of an estimated ˆ350 million. The firm is set to offer some of its stock at the London Exchange, hoping to reap ˆ100 million. The Finns hope to receive the remaining sum from a strategic investor.
The Talvivaara deposit in north-eastern Finland holds 3 percent of the world nickel reserves, or 340 million metric tons of nickel ore. The company expects to produce 30,000 metric tons of nickel, 60,000 tons of zinc and 10,000 tons of copper every year. The annual revenues are estimated at ˆ300 million.
Talvivaara may become Norilsky Nickel’s first overseas asset. The company, however, has never been in shortage of nickel ore. Its explored reserves total 8.1 million metric tons. If talks with Talvivaara Mining are a success, Norilsky Nickel will take part in building a processing plant at the deposit to sell nickel at the world market, according to the information Kommersant obtained.
ww.kommersant.com
All the Article in Russian as of Sep. 13, 2006
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