Nickeloutes, lo behold; Ontario's Mr. Nickel seeks further opportunities beyond Ambatovy:
Sherritt buys into Sulawesi nickel project
Wed Dec 1, 2010 9:16am EST
* Sherritt committed $110 million to feasibility study
* Sherritt to own 57.5 pct, Rio Tinto 42.5 pct
TORONTO Dec 1 (Reuters) - Diversified miner Sherritt International Corp (S.TO) said on Wednesday it would take a majority stake in the Sulawesi nickel project in Indonesia.
The Toronto-based company said it would acquire a 57.5 percent equity stake in the holding company that owns the Sulawesi Project, while global miner Rio Tinto (RIO.L) will hold the remaining 42.5 percent.
As consideration for its interest, Sherritt has committed to fund $110 million toward a feasibility study from which a development decision will be made, the companies said.
Sherritt, which primarily owns assets in Cuba and Madagascar, said existing ownership stakes in the property would fall after local Indonesian interests acquire a 20 percent stake in accordance with the country's mining law.
Sherritt and Rio Tinto will then indirectly own and control 80 percent in the project, with Sherritt retaining a 46 percent stake and Rio Tinto maintaining 34 percent.
"The Sulawesi Project currently ranks as one of the largest known undeveloped, greenfield lateritic nickel deposits in the world," a Sherritt statement said. (Reporting by Pav Jordan in Toronto; editing by Janet Guttsman)
