Inco Ltd. and Falconbridge Ltd. Reach Definitive Agreement with US DOJ on Mining Acquisition Remedy

Strategic Insights -

Toronto-based mining and metals companies Inco Ltd. and Falconbridge Ltd. have agreed on a remedy to address potential competition issues related to Inco's pending acquisition of Falconbridge. The remedy involves the sale of Falconbridge's Nikkelverk refinery in Norway and its marketing and custom feed organizations to LionOre Mining International Ltd. The deal also includes an agreement for Inco to supply up to 60,000 metric tons of nickel in matte annually to the refinery for up to 10 years.

Key Takeaways:

  • Inco Ltd. and Falconbridge Ltd. have reached a definitive agreement with the US Department of Justice on a remedy to address potential competition issues.
  • The remedy involves the sale of Falconbridge's Nikkelverk refinery in Norway and its marketing and custom feed organizations to LionOre Mining International Ltd.
  • The agreement includes a 10-year supply of up to 60,000 metric tons of nickel in matte annually to the refinery.
  • LionOre Mining International Ltd. will acquire the Falconbridge marketing and custom feed organizations, which market and sell finished nickel and other products produced at Nikkelverk.
  • The sale involves the equivalent of the current volume of feed provided by Falconbridge's operations to the refinery.
  • Wendy Tsau, a spokesperson for Inco, confirmed the agreement and provided details on the remedy.

Statistics:

  • The sale of Falconbridge's Nikkelverk refinery and marketing and custom feed organizations to LionOre Mining International Ltd. totals approximately 60,000 metric tons of nickel in matte annually.
  • The agreement covers a period of up to 10 years, ensuring a consistent supply of nickel to the refinery.
  • Inco will supply up to 60,000 metric tons of nickel in matte annually to LionOre Mining International Ltd..

Sources:

  • Dow Jones Commodities News via Comtex
  • Comtex News Network, Inc.