News

28 December 2015

First Quantum Minerals plans to sell the Kevitsa mine

First Quantum Minerals plans to sell the Kevitsa mine in Finland. This step is taken to reduce the existing debt. Among possible buyers is the company "Lundin Mining" and "Boliden".

At the Kevitsa mine, developments are conducted through an open method. The work is carried out at the same-named deposit. After the extraction of raw materials, it is enriched. The result of the processes is the collective and nickel concentrate. It includes copper , platinum, gold. Experts believe that the cost of the mine will be at least 1 billion USD. "First Quantum Minerals" plans to finish accepting applications from potential buyers in early 2016. "FirstQuantumMinerals" works with "JefferiesGroup". Their cooperation is designed to identify likely buyers of the mine. Consideration is also given to the possibility of transferring the nickel mine of the Australian company Ravensthorpe.

Sale of assets by companies is widely practiced. In times of crisis, mining corporations, if possible, reduce production costs. Also, loss-making assets are sold. "First Quantum Minerals" started talking about its own desire to reduce the debt in October this year. Repayment of 1 billion USD will be made by reducing expenses. With the hammer will go and non-profit projects and enterprises. Kevitsa was bought by the company in 2008 for 201 million USD. Up to this point, the mine belonged to Scandinavian Minerals. The construction of the "Ravensthorpe" was carried out by BHP Billiton. The launch took place in 2009, but the company forcedly closed the mine a few months later. "First Quantum" bought the enterprise in the same year, in December. The purchase price has reached 40 million USD. In 2011, the mine was restarted.

As for the nickel sector, the specialists of "Research and Markets" forecast the expansion of the market. In the near future, the average growth rate will be 5% annually. The growth stimulus will be the high demand for nickel from the transport and defense sectors. Nickel is used in the production of stainless steel . In 2014, its production accounted for about 45% of the total consumed non-ferrous metal. The remaining quantity was used in electroplating, in the production of non-ferrous alloys and super alloys. However, it is transport and defense that account for the largest volume of nickel consumption. Last year it was about 39%.

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