Russian nickel producer Norilsk Nickel (NILSY-O, MNOD-L) has concluded a strategic alliance with another of the Big Three, this time signing a deal with BHP Billiton (BHP-N, BLT-L).
The companies have agreed to identify prospects together and to form joint-venture companies, project by project, when they agree to pursue further work on them. Norilsk and BHP will have equal interests, but Norilsk will have one extra share to maintain control of the company.
The deal has a similar structure to the one Norilsk previously signed with Rio Tinto (RTP-N, RIO-L) in April. Under that deal, Norilsk and Rio Tinto have set up an operating company, RioNor Exploration, owned 51% by Norilsk. RioNor is to concentrate on projects in Siberia and the Russian Far East.
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