ravensthorpe, page-27

This was posted today.



Canada group ponders bid for RavensthorpePETER KLINGER

November 16, 2009

A SURPRISE entrant has joined the battle for BHP Billiton's mothballed Ravensthorpe nickel laterite mine, with Canadian copper producer First Quantum Minerals believed to be considering a bid.

First Quantum, which is jointly listed on exchanges in Toronto and London and has a market value of $C5.6 billion ($5.7 billion), focuses primarily on copper operations in Africa but also has a nickel laterite venture in Finland.

Its senior management team boasts a good understanding of WA. Chairman Philip Pascall spent several years working on Rio Tinto assets, including running the Argyle diamond project and consulting to Hamersley Iron.

His business development executive director, Perth-born Martin Rowley, is a former Bond Corp senior executive and one-time player in WA's junior resources sector.

First Quantum's flagship Kansanshi mine in Zambia was built by GRD Minproc, which was a lead contractor during Ravensthorpe's development. First Quantum could not be reached for comment and it remains unclear whether the Canadian miner will submit a binding offer by the end of this month to Bank of America Merrill Lynch, which is running the sales process on behalf of BHP.

The miner had more than $A800 million in cash at September 30, although a bid for Ravensthorpe would represent a significant shift in geographic focus.

BHP is thought to have told prospective bidders that it wants $300 million to $500 million for Ravensthorpe. In addition, the new owner will face a similar bill to restart the mine and overcome the technical issues that dogged it during its short life.

China Metallurgical Group Corp (MCC) and Murrin Murrin nickel laterite miner Minara Resources are also considering lodging bids - maybe even a joint offer - while Andrew Forrest is expected to try to find a Chinese partner to back a proposal using his listed vehicle, Poseidon Nickel.