Mining Exploration News

The biggest mining deals in Russia this year, the metals tycoon on Tuesday would sell 16.6 percent of the Arctic mining giant Norilsk Nickel to his former business partner.

The two tycoons agreed last year to divide their holdings in Norilsk, a Russian factory founded by Stalin, whose value soared along with high commodity prices. Norilsk is the world’s largest producer of nickel, a key alloy in stainless steel.
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The world’s top nickel and palladium miner, Norilsk Nickel [OTC:NILSY; LSE:MNOD], announced disappointing first quarter financial results on May 4, in the wake of its major deal with Russia’s aluminium giant United Co. Rusal. Amid analysts’ warnings of value dilutive repercussions stemming from the deal, Norilsk’s unexpected first quarter losses appeared to raise some doubts about the company’s share value.

In January-March 2008, Norilsk reported 21.836 billion rubles ($925 million) in net losses, according to Russian accountancy standards. Norilsk explained its first quarter losses were due to what it described as negative value reassessment of its financial investments, but did not elaborate. Read More…

Indonesia’s PT Aneka Tambang said on Thursday it expects to meet its 2008 nickel output target despite shutting one of its smelters for repairs.

First-quarter nickel output of 4,362 tonnes was little changed against the same period a year ago, it said.

The company said it had so far reached 26 percent of its production target of 17,000 tonnes of nickel this year.
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Rio Tinto Ltd/Plc , under pressure to broaden its reach in commodities as it fights a takeover by BHP Billiton Ltd , said on Tuesday it had agreed to tax clauses with Indonesia needed before it can develop a nickel mine costing $1.5 billion.

Rio has largely been absent from nickel mining and hopes to start mining the metal in Indonesia’s Sulawesi province in about seven years. BHP , with operations in Australia and Colombia, is the world’s third largest nickel producer.

BHP has criticised Rio’s lack of assets in areas such as nickel and oil, where BHP also is active.
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The aluminum tycoon Oleg V. Deripaska said Thursday that he had bought 25 percent of the Arctic mining company Norilsk Nickel, a deal that furthers Mr. Deripaska’s quest to consolidate the Russian metals and mining industry.

The transaction continues a pattern in Russia of uniting companies separated in the breakup of the Soviet Union and the privatization trend in the 1990s into big new monopolies, either state-owned or controlled by executives loyal to the Kremlin.
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MCX Nickel futures prices crashed by around 10% on the week ended on Friday, mainly on increased offerings by market participants on dull demand from Asian producers, amid reports of lower global output of stainless steel in 2007.

Copper futures and gold futures prices also weakened marginally on continued offerings by operators following weak international markets. Crude oil futures are also down by nearly 4% over the previous week mainly on global worries.
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Xstrata Nickel is pleased to announce that it has presented a cheque in the amount of Cdn$32.6 million to the Makivik Corporation, representing the local Inuit communities’ share of the profits generated in 2007 by the Raglan nickel mine operation, located in the Nunavik Territory of Northern Quebec.

This yearly profit-sharing is part of the Raglan Agreement, a comprehensive agreement signed on February 28, 1995 with Makivik and local Inuit communities. The agreement supports the harmonized relations and fostering of opportunities between Xstrata Nickel and local populations and their representatives in areas such as training, hiring of local businesses and environmental management. Read More…

Norilsk Nickel sold its 1 percent stake in Polyus Gold for $98.9 million (49.9 million pounds), the metals giant said on Thursday, as a battle looms for control over Russia’s No.1 gold miner.

Tycoons Vladimir Potanin and Mikhail Prokhorov, who each own large stakes in Polyus and Norilsk, are dividing their assets. Potanin’s investment vehicle Interros denied any connection with Getoliba Holdings Limited, which bought the stake, while Prokhorov’s Onexim Group declined to comment.

Potanin could win control of Polyus if he raised his stake as the holdings of the two in the company differ little but Prokhorov’s stake is said to be slightly larger.
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Oil prices weakened on Thursday after a strong surge in the previous session while gold briefly regained the $900 level and base metals weakened across the board.

Nymex May West Texas Intermediate dipped 70 cents to $104.18 a barrel after rising $3.85 on Wednesday and touching a session high of $105.10.

ICE May Brent lost 80 cents at $102.95 a barrel.
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