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Norilsk Nickel Reaches Canada’s Deposit
GMK Norilsk Nickel has found in Canada nickel concentrate for its Finland’s refinery. The raw will be bought from Canadian Royalties, where Norilsk Nickel is a minority holder. The investments in the project that will produce the first concentrate by late 2009 are estimated at no less than $150 million. The analysts predict that GMK will eventually attempt to step up in Canadian Royalties.
GMK Norilsk Nickel announced yesterday it inked a number of agreements with Canadian Royalties Inc. (CRI) to bring momentum to the Nunavik copper and nickel project implemented in Canadian Quebec. To be more precise, the Russian company has undertaken to buy out 7.2 percent of CRI stocks under closed subscription, paying $25 million for them.
According to CRI, the price includes the 23-percent premium to the market cost of the stocks as of September 28, 2007.
The agreement with CRI guarantees supplies of nickel concentrate from the deposits of Nunavik project to Norilsk Nickel’s Harjavalta Oy starting from 2009. By inking an agreement, Norilsk Nickel has actually got access to the deposits with reserves of 324.6 million pounds of nickel, 393 million pounds of copper, 276.7 thousand ounces of platinum, 1.079 million ounces of palladium and 69.154 thousand ounces of gold.
According to a source close to negotiations, the overall value of supplies to the Finnish subsidiary of Norilsk Nickel will exceed $450 million, i.e. the volume could be from 13,000 tons to 15,000 tons of nickel concentrate.
Norilsk Nickel Deputy General Director Tav Morgan specified that Canadian project is yet at the stage of elaboration and additional exploration and the project capacity could be attained by late 2009. Apart from nickel, CRI intends to produce 17.6 thousand tons of copper, 425 tons of cobalt, 14.5 thousand ounces of platinum and 78.6 thousand tons of palladium.
www.kommersant.com
All the Article in Russian as of Oct. 03, 2007
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