LME clearing house unveils reforms, to triple member capital requirements
The exchange also said that LME Clear would reduce the amount members have to contribute towards its default fund.
Ardea Resources said on Monday it signed a binding deal with Japan’s Sumitomo Metal Mining and Mitsubishi Corp to develop the Kalgoorlie nickel project, sending the Australian nickel miner’s shares more than 11% higher.
Under the agreement, the companies will form a joint venture and fund and conduct a definitive feasibility study to arrive at a final investment decision for the Kalgoorlie nickel project (KNP) – Goongarrie hub, Ardea Resources said in a statement.
The consortium of Sumitomo Metal Mining and Mitsubishi will fund A$98.5 million ($64.42 million) for the costs of the study, thereby earning a 50% stake in the joint venture. Ardea will own the remaining stake in the venture.
“Once in production, the Kalgoorlie nickel project – Goongarrie hub is expected to be one of the largest nickel-cobalt producers in Australia,” Ardea CEO Andrew Penkethman said.
Ardea shares were trading 9.4% higher at A$0.93 as of 0010 GMT, after rising up to 11% in early trade.
($1 = 1.5291 Australian dollars)
(By Sameer Manekar; Editing by Subhranshu Sahu)
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