BHP Billiton Closing 1st Round Ravensthorpe Bids Monday -Source
October 12 2009 - 12:40AM
Dow Jones News
BHP Billiton Ltd. (BHP) is closing the first round of bidding
for the idled Ravensthorpe nickel mine in Western Australia on
Monday, a person familiar with the matter said.
BHP has been conducting a review since mid-year of the nickel
laterite mine, which cost the company US$2.1 billion to build but
closed down only a few months after commissioning.
Media reports named Australian nickel miner Minara Resources
Ltd. (MRE.AU), which already operates a laterite mine in Australia,
and China's largest nickel producer Jinchuan Group. Australian
mining magnate Clive Palmer, who in July bought BHP's Yabulu nickel
refinery, has also been named as a potential bidder.
"These companies would be the logical partners," the person
said, adding that the number of potential bidders seemed "light on
numbers."
"Minara is a good fit," said one industry spokesman, who
declined to be named.
The Yabulu refinery in Queensland had been modified to take feed
from Ravensthorpe, and the operation was set to produce 50,000
metric tons of nickel annually.
The sale process is likely to conclude by the end of the year,
and so far has received plenty of "competitive tension," the source
said.
BHP earlier Monday declined to comment on the reports of the
bidding process, and repeated earlier statements that it's
considering all options for Ravensthorpe, including divestment.
-By Elisabeth Behrmann, Dow Jones Newswires;
61-2-8272-4689 elisabeth.behrmann@dowjones.com