Russia’s Norilsk Nickel sells Lake Johnston to Poseidon Nickel

MOSCOW, Sep 3 (PRIME) -- Russian metals giant Norilsk Nickel has agreed to sell its Australian company Lake Johnston to a local company Poseidon Nickel at an undisclosed price, the company said in a statement Wednesday.

The deal includes mines Maggie Hays and Emily Ann and their entire infrastructure. Norilsk also expects to receive substantial revenue from writing off the reserves for ecological obligations, which Poseidon Nickel will take over, the company said.

“The deal completes our Australian assets sales,” the statement said.

The deal is expected to be closed in September-December after it is approved by regulators and after other conditions of the deal are fulfilled.

Operations of Lake Johnston, whose annual capacity amounts to 12,000 tonnes of nickel concentrate, operations were suspended in 2013.

In July, Norilsk Nickel sold its suspended Black Swan and Silver Swan mines in Australia to Poseidon Nickel for U.S. $1.5 million.

The company has already received about $150 million from selling non-core assets, including such assets in Australia, a pension fund and minority stakes in grid companies. Overall, Norilsk Nickel plans to receive $1 billion from selling all the non-core assets.

End