Norilsk Nickel to Sell Idled Australian Nickel Mines

Bloomberg reported that Norilsk Nickel (MCX:GMKN) has hired Citigroup to help sell off its Australian assets, including four nickel mines that have been idled due to “low prices and high production costs.” As yet there is no timeline for the sale’s finalization.

As quoted in the market news:

The company has sent out fliers to prospective buyers to acquire the assets, an Australia-based company spokesman, who asked not to be named citing company policy, said by phone. Norilsk in 2010 said it had plans to divest most of its Australian assets it acquired in 2007 through the C$6.8 billion ($6.5 billion) acquisition of LionOre Mining International Ltd.

Nickel producers are struggling with falling prices for the metal used to make stainless steel after demand from steelmakers declined. Prices have fallen 19 percent this year to $13,825 a metric ton at 12:22 pm. Sydney time, while at the time of the LionOre acquisition, they traded around $40,000 a ton.

Click here to read the full Bloomberg report.