Russia’s Norilsk Nickel cuts stake in Bystrinsky project to 89.33%

MOSCOW, Jul 25 (PRIME) -- Russian metals giant Norilsk Nickel has cut its stake in the Bystrinsky project to 89.33% from 100% on July 20 after Cyprus-based GRK Eastern Geology Limited sold new shares to third parties, the company said in a statement late on July 22.

However, the number of shares owned by Norilsk Nickel remains flat at 8,667 shares.

The Bystrinsky GOK ore mining and dressing plant, whose projected capacity will stand at more than 65,000 tonnes of copper per year, will be launched in 2017, and Chinese firms are expected to become consumers of the plant’s main production, copper concentrate.

Previously, the company said it planned to sell 13.33% in the project to Highland Fund, a consortium of Chinese investors, for U.S. $100 million and the government has approved the deal. The consortium has recently paid for a stake in a joint venture with Norilsk Nickel aimed at the project’s development, but no details of the deal were disclosed.

In March, Norilsk Nickel CEO Vladimir Potanin said the company may sell up to 20% in the project to Chinese investors.

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