Earth AI, Legacy Minerals make first greenfield palladium discovery using artificial intelligence
The companies announced the verified discovery of one of the largest palladium mineral systems in Australia.
First Quantum Minerals on Wednesday said it agreed to sell a 30% stake in its Ravensthorpe nickel mine in Western Australia to South Korean steelmaker POSCO for $240 million.
The miner will remain as operator of the mine and retain a 70% interest.
“First Quantum expects to use the proceeds to reduce the outstanding balance on its revolving credit facility as it continues to focus on debt reduction,” the company said in a press release.
The companies have agreed to evaluate a strategic partnership to produce battery precursor materials from production at the mine.
Under the deal, POSCO will receive 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.
“Today’s transaction could be an example for future strategic investments in the sector,” said BMO Capital Markets in a note.
“As the ‘green’ economy gains strength, supplies of critical raw materials could become scarce – especially those supplies which are traceable to sustainable and ethical mining practices”
Ravensthorpe is a large-scale, open pit nickel and cobalt operation located in Western Australia.
Nickel production last year was 12,695 tonnes.
Midday Wednesday, First Quantum’s stock was down 7% on the TSE. The company has a C$19.5 billion market capitalization.
