Andrew Forrest's Wyloo looks for more nickel deals as it seals Mincor buy
Reuters
Published Jul 05, 2023 12:28AM ET
By Melanie Burton
MELBOURNE (Reuters) - Wyloo Metals, the privately held battery resources unit of Australia iron ore baron Andrew Forrest, sees room to grow in nickel as it closes out its A$750.3 million ($501.4 million) buyout of miner Mincor Resources (ASX:MCR), its CEO said.
Wyloo has breached the 90% holding in Mincor for compulsory acquisition, it said on Wednesday, and the takeover is expected to be sealed in coming weeks.
A key attraction for the buyout is Mincor's Cassini nickel sulphide deposit in Western Australia's Kambalda region that raises Wyloo's Australian exposure to the battery material.
The Kambalda nickel mining district was pegged out decades ago by Western Mining Corp, an Australian mining behomoth that was acquired by BHP Group (NYSE:BHP) in 2005. The region is now home to several operators.
"We do like the idea of bringing it back together," Wyloo CEO Luca Giacovazzi said of the prospect of consolidating the district. "Do we have appetite to do more deals? I’m always going to answer the same way: Yes."
"Nickel is a big focus for us. I wouldn’t say it’s just nickel but I would say nickel is our main focus," he added.
Wyloo expects to build on Mincor's five-year mine life given the nature of Kambalda's geology that makes it the country's top nickel district, he said.
As well as BHP, Widgie Nickel and Lunnon Metals also have nickel projects in Kambalda.
Nickel makes batteries energy dense so cars can run further on a single charge. Sulphide deposits are seen as greener than laterite deposits found in top producer Indonesia because they require less power to process than laterite alternatives that are often processed using coal.
Mincor's nickel resources could help feed a A$600 million to A$1 billion precursor battery chemicals processing plant that Wyloo is planning to build with miner IGO in the country's west, and that it hopes to make a call on next year, Giacovazzi said.
Australia is looking to build a critical minerals processing industry to reap more value from the electric vehicle battery chain.
Wyloo elbowed out BHP to buy Canada's Noront Resources, which holds the high-grade nickel sulphide deposit Eagle's Nest, for C$617 million in late 2021. It also holds interests in copper and rare earths.
Get The News You Want
($1 = 1.4963 Australian dollars)
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.