Norilsk Nickel expects to realize a material gain upon the sale of the asset with the transfer of associated environmental obligations to Poseidon and the receipt of relevant cash consideration.
“In 2013 as part of our new strategy we committed to shift focus to our Tier 1 mining assets to maximize returns to our shareholders and dispose non-Tier 1 assets through a competitive process. The sale of Lake Johnston completes the divestment process of our former operating assets in Australia”, Pavel Fedorov, Norilsk Nickel First Deputy CEO commented.
The sale is subject to regulatory approvals and satisfaction of other customary closing conditions and is expected to close in the second half of 2014.
Citigroup has acted as Norilsk Nickel’s financial advisor on the divestment of its portfolio of Australian assets.