Norilsk Nickel is to sell its Avalon and Cawse nickel assets in western Australia to Wingstar Investments, the Russian producer said Wednesday.
"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 and maintenance in 2003 and 2008, respectively," Norilsk Nickel said.
It did not give a value for the deal which is subject to regulatory approval and satisfaction of other customary closing conditions, and was expected to close in the second half of the year.
Citigroup will act as Norilsk's exclusive financial adviser on the divestment of its Australian nickel assets.
Wingstar Investments is a resource focused investment company with mining and exploration tenements in western Australia.
Norilsk Nickel, the world's largest nickel and palladium producer, plans to produce 225,000-300,000 mt of refined nickel in 2014. In the first quarter, it produced 67,818 mt of nickel, down 5.2% year on year.
