Dundas Mining will acquire the Avebury nickel mine from MMG Ltd. for A$25 million. The deal consists of a deposit of A$1.5 million payable on signing and A$23.5 million payable on completion. Dundas Mining is an exploration and mining development company based in Tasmania. The Avebury mine was placed on care and maintenance in 2009.
The sale is subject to MMG board approval and could close by the end of the year.
MMG believes this offer represents the best outcome for both MMG and the Avebury asset, explained Rick Watsford, general manager-Australian operations for MMG.
“Dundas Mining is committed to a restart of the mine and MMG is confident that the sale will reinvigorate the Zeehan area, by providing new jobs and economic benefit to the region,” Watsford said.
In related news, MMG CEO and Executive Director Andrew Michelmore confirmed his intention to retire in 2017. A succession process, led by Chairman Jerry Jiao has commenced. “The board and Andrew have agreed it is important for him to stay on until mid-2017 to oversee the production ramp up of Las Bambas and other key strategic initiatives,” Jiao said. “This will ensure continuity and an orderly succession process.”
“After 14 years as chief executive of four different companies it is time for me to seek new challenges after concluding my full time executive career,” Michelmore said. “However, nothing changes today. I am as committed as ever to ensuring we continue the successful production ramp up of Las Bambas and set our business up for future growth and success.”