RUSSIA'S Norilsk Nickel, the world's largest nickel and...

RUSSIA'S Norilsk Nickel, the world's largest nickel and palladium producer, is looking to exit its Australian mine assets and has hired Citigroup to handle the sale.

"Citigroup has approached prospective buyers and they've sent out flyers," the Australia-based spokesman told The Wall Street Journal.

Norilsk's assets in Western Australia were mostly bought through its 2007 acquisition of Canada's LionOre Mining International.

The Honeymoon Well nickel project and the Lake Johnston, Cawse, Black Swan and Waterloo nickel mines were for sale, as was the Thunderbox goldmine, the spokesman said.

All the mines are on care and maintenance, including Lake Johnston, which was shut in April due to poor nickel prices.

The divestment plans come after Norilsk last week posted a 63 per cent fall in first-half net profit to $545 million due to non-cash writeoffs. The company said it expected global economic uncertainty to continue in the second half of the year.

The price of nickel was bottoming out but a recovery would be capped by a market surplus, Norilsk said. The price of nickel -- which is used in the manufacture of stainless steel -- has fallen 20 per cent this calendar year due to reduced demand from steelmakers.

- See more at: http://www.theaustralian.com.au/business/wall-street-journal/norilsk-to-offload-nickel-mines/story-fnay3vxj-1226713605339#sthash.T8qlCKk0.dpuf