"Jinchuan considers that Metals X's Wingellina nickel limonite project (in WA) represents a much better opportunity to grow its global business with a superior uncomplicated orebody with simple metallurgy," Metals X said.

"Although remote, Jinchuan believes the world-class size and quality of Wingellina will overcome the isolation impediment."

Minara Resources Ltd (ASX:MRE) last week said it was participating in the Raventhorpe sale process.

The mine, near Esperance, fell victim to plunging nickel prices amid the global financial crisis and closed in January this year about 12 months after it opened.

It has been reported that China Metallurgical Group is also interested in purchasing the asset.

Iron ore billionaire Clive Palmer told AAP in July, after buying BHP Billiton's Yabulu nickel refinery in Queensland, that he would also consider purchasing Ravensthorpe, which could provide an enlarged Yabulu refinery with additional feedstock.

The mine closure resulted in 1,800 job losses and sparked outrage among the local community, who claimed they had been told the mine would be open for 30 years.

AAP lm

Rumor (October 7, 2009):

According to Bloomberg, Australian Financial Review reported that Jinchuan Group may bid for Ravensthorpe nickel operation from BHP Billiton.

Reportedly, Minara Resources, Ltd. and Poseidon Nickel Limited are also contemplated to be in the race to acquire the Ravensthorpe nickel operation.

Gresham Partners Limited and Sino Resources Capital are acting as advisors to Jinchuan Group.

Bank of America Merrill Lynch & Co., Inc. is acting as advisor to BHP Billiton.

Deal Type    Acquisition
Sub-Category Asset Purchase
Deal Status  Dead Rumour: 2009-11-09

Deal Participants

Target (Company)   BHP Billiton Limited - Ravensthorpe Nickel Operation - Australia
Acquirer (Company) Jinchuan Group Limited
Vendor (Company)   BHP Billiton Limited

"Jinchuan considers that Metals X's Wingellina nickel limonite project (in WA) represents a much better opportunity to grow its global business with a superior uncomplicated orebody with simple metallurgy," Metals X said.

"Although remote, Jinchuan believes the world-class size and quality of Wingellina will overcome the isolation impediment."

Minara Resources Ltd last week said it was participating in the Ravensthorpe sale process.

The mine, near Esperance, fell victim to plunging nickel prices amid the global financial crisis and closed in January this year about 12 months after it opened.

It has been reported that China Metallurgical Group is also interested in purchasing the asset.

Iron ore billionaire Clive Palmer told AAP in July, after buying BHP Billiton's Yabulu nickel refinery in Queensland, that he would also consider purchasing Ravensthorpe, which could provide an enlarged Yabulu refinery with additional feedstock.

The mine closure resulted in 1,800 job losses and sparked outrage among the local community, who claimed they had been told the mine would be open for 30 years.

(AAP) rw