POSCO’s $240 Million Acquisition of Ravensthorpe Nickel

MinterEllison advised First Quantum Minerals on sale of 30% of Ravensthorpe Nickel for $240 Million to POSCO.

On May 19, First Quantum announced it had entered into a binding agreement to sell a 30% equity interest in Ravensthorpe Nickel Operation (“RNO”) to POSCO for a cash consideration of USD$240 million.

The transaction includes a long-term offtake agreement for 7,500 tonnes of nickel in mixed nickel-cobalt hydroxide precipitate (“MHP”) per year produced at RNO, beginning in 2024. As part of the transaction, First Quantum and POSCO have also entered into a Memorandum of Understanding to explore a partnership to produce battery cathode precursor materials utilising the MHP from RNO.

Located 150km west of Esperance in Western Australia, Ravensthorpe produces a high quality mixed nickel-cobalt hydroxide precipitate which is a sought-after feedstock for the production of EV battery cathode materials. The operation is positioned as a clean, sustainable source of nickel for the EV battery value chain with industry leading ESG credentials and a small carbon emissions footprint.

First Quantum is a global copper company, that operates long life mines in several countries and employs approximately 20,000 people world-wide. The company has significant nickel resources which complement its world-class copper operations, underpinned by Ravensthorpe and the Enterprise Nickel Project in Zambia.

POSCO, South Korea’s largest steel producer, is also a leading integrated producer of cathode and anode materials for the electric vehicle battery market.

The transaction is subject to certain conditions including approval by the Australian Foreign Investment Review Board (“FIRB”), and is expected to close in the third quarter of 2021.

MinterEllison advised on all Australian legal aspects of the deal, working closely with outside counsel in Canada, South Korea and United Kingdom. The multi-disciplinary deal team was led by Partners Adam Handley (Picture) and Bryn Davis, with support from Simon Scott (Partner), Jordon Philips (Partner), Gemey Visscher (Partner), Elissa Romanin (Partner), Nick Sceales (Special Counsel), Anthony Di Biase (Special Counsel), Tighe Whelan (Special Counsel), Kayla Giudicatti (Associate) and Dylan Hoyne (Lawyer).

 

Involved fees earner: Bryn Davis – Minter Ellison; Anthony Di Biase – Minter Ellison; Kayla Giudicatti – Minter Ellison; Adam Handley – Minter Ellison; Dylan Hoyne – Minter Ellison; Jordan Phillips – Minter Ellison; Elissa Romanin – Minter Ellison; Nick Sceales – Minter Ellison; Simon Scott – Minter Ellison; Gemey Visscher – Minter Ellison; Tighe Whelan – Minter Ellison;

Law Firms: Minter Ellison;

Clients: First Quantum Minerals Ltd. ;

Author: Sonia Carcano