WMC To Sell Nickel Mine

WMC Resources Ltd today announced that it had entered into a conditional agreement to sell its Lanfranchi nickel mine and associated tenements at Kambalda to Sally Malay Mining Limited and Donegal Resources Pty Ltd (operating as the Lanfranchi Joint Venture) for A$26M.

The divestment of Lanfranchi continues WMC's strategy of selling mature nickel mines at Kambalda and participating in the benefits that a 'third party' can yield from the remaining resource.

WMC retains an exclusive right to toll treat the ore at its wholly-owned and operated Kambalda Concentrator and then to purchase the concentrate for smelting at the Kalgoorlie Nickel Smelter.

The Lanfranchi mine is on the 'Tramways' tenements which cover almost 5,000 hectares. WMC ceased operations at Lanfranchi in March 2002 and placed the mine on care and maintenance.

'Lanfranchi has produced more than 100,000 tonnes of nickel over 15 years', said WMC General Manager - Operations - Nickel, Mark Adams. 'The new owners are expected to commence production early next year.'

The tenements are currently held under the Nickel Refinery Agreement Act and initially it is proposed the transaction will involve a sub-lease of the tenements.

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