First Quantum Agreed to Sell 30% Stake in Ravensthorpe Mine

SEATTLE (Scrap Monster): First Quantum Minerals Ltd. announced that it has reached an agreement to sell 30% stake in its Ravensthorpe nickel mine in Western Australia. As per the binding agreement, the equity interest will be sold to POSCO- the leading South Korean steelmaker for a cash consideration of $240 million. The transaction, subject to customary regulatory approvals, is expected to close during Q3 this year.

According to press release, the company will retain the remaining 70% interest in the mine and will continue to operate it. The two parties have also agreed to explore a strategic partnership to produce battery cathode precursor materials from Ravensthorpe production. The proceeds of the sale transaction will be utilized by First Quantum Minerals to reduce its overall debt.

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Under the terms of the agreement, POSCO will be provided with a long-term offtake agreement for 7,500 tonnes of nickel in mixed nickel-cobalt hydroxide precipitate per year produced at Ravensthorpe, beginning in 2024. The remainder of the production will be marketed by First Quantum.

Philip Pascall, Chairman and CEO, First Quantum said that he is pleased to welcome POSCO as its new long-term strategic partner in Ravensthorpe. The complementary skillsets of the two partnering companies will maximize the strategic value of Ravensthorpe as a key long-term supplier of nickel to the EV battery sector, he added.