Cleveland, Ohio-based specialty-metals giant
Details of the transaction were not released, though OM Group says it will use output from Cawse to supply 8,000 tonnes of feedstock annually to its nickel refinery and 800 tonnes annually to its cobalt refinery.
Situated 50 km northwest of Kalgoorlie, the Cawse project is regarded as the most successful of the three Australian pressure-acid-leach laterite producers.
The project, which hosts resources of 248 million tonnes grading 0.7% nickel and 0.04% cobalt, started production in late 1998 but didn’t show positive cash flow until August 1999 and did not reach design capacity until May 2000.
The project was put on the block in March by outside administrators after Australian owner
During the last three months of 2000, Cawse turned out 1,401 tonnes nickel and 186 tonnes cobalt. In all of 2000, Cawse produced 6,639 tonnes nickel and 998 tonnes cobalt, running at about three-quarters of forecast production levels even as it put 450,000 tonnes of ore (90% of capacity) through the autoclaves.
Nickel recoveries have been in the 85-90% range, and cobalt recoveries, slightly more than 90%.
Earlier last month, OM Group acquired the metal-organics division of chemical company Rhodia, including two manufacturing plants in Manchester, U.K., and Bethlehem, Pa.
The two deals come on the heels of a successful US$400-million private placement of 9.25% senior subordinated notes due in 2011, with net proceeds earmarked for outstanding debt.
Also, OM Group anticipates recording an extraordinary US$0.15-per-share charge to its fourth-quarter earnings, representing the writeoff of bridge-note fees.
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